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Short title,extent andcommence-ment.

MAHARASHTRA ACT No. XLIII OF 2017.

(First published, after having received the assent of the Governor in the“Maharashtra Government Gazette”, on the 15th June 2017).

An Act to make provisions for levy and collection of tax on intra-Statesupply of goods or, services or, both in the State of Maharashtra and the

matters connected therewith or incidental thereto.

WHEREAS, it is expedient to make provisions for levy and collection oftax on intra-State supply of goods or, services or, both in the State ofMaharashtra and the matters connected therewith or incidental thereto ; itis hereby enacted in the Sixty-eighth Year of the Republic of India asfollows :—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Maharashtra Goods and Services TaxAct, 2017.

(2) It extends to the whole of the State of Maharashtra.

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In pursuance of clause (3) of article 348 of the Constitution of India, the following translationin English of the Maharashtra Goods and Services Tax Act, 2017 (Mah. Act No. XLIII of 2017), ishereby published under the authority of the Governor.

By order and in the name of the Governor of Maharashtra,

PRAKASH H. MALI,Principal Secretary to Government,

Law and Judiciary Department.

RNI No. MAHENG /2009/35528

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(3) It shall come into force on such date as the State Government may,by notification in the Official Gazette, appoint :

Provided that different dates may be appointed for different provisionsof this Act and any reference in any such provision to the commencement ofthis Act shall be construed as a reference to the coming into force of thatprovision.

2. In this Act, unless the context otherwise requires,––(1) “actionable claim” shall have the same meaning as assigned to

it in section 3 of the Transfer of Property Act, 1882 ;

(2) “address of delivery” means the address of the recipient of goodsor services or both indicated on the tax invoice issued by a registeredperson for delivery of such goods or services or both ;

(3) “address on record” means the address of the recipient asavailable in the records of the supplier ;

(4) “adjudicating authority” means any authority, appointed orauthorised to pass any order or decision under this Act, but does notinclude the Commissioner, Revisional Authority, the Authority forAdvance Ruling, the Appellate Authority for Advance Ruling, theAppellate Authority and the Appellate Tribunal ;

(5) “agent” means a person, including a factor, broker, commissionagent, arhatia, del credere agent, an auctioneer or any other mercantileagent, by whatever name called, who carries on the business of supplyor receipt of goods or services or both on behalf of another ;

(6) “aggregate turnover” means the aggregate value of all taxablesupplies (excluding the value of inward supplies on which tax is payableby a person on reverse charge basis), exempt supplies, exports of goodsor services or both and inter-State supplies of persons having the samePermanent Account Number, to be computed on all India basis butexcludes Central tax, State tax, Union territory tax, integrated tax andcess ;

(7) “agriculturist” means an individual or a Hindu Undivided Familywho undertakes cultivation of land—

(a) by own labour, or(b) by the labour of family, or(c) by servants on wages payable in cash or kind or by hired

labour under personal supervision or the personal supervision ofany member of the family ;(8) “Appellate Authority” means an authority appointed or

authorised to hear appeals as referred to in section 107 ;(9) “Appellate Tribunal” means the Goods and Services Tax

Appellate Tribunal referred to in section109 ;(10) “appointed day” means the date on which the provisions of this

Act shall come into force ;(11) “assessment” means determination of tax liability under this

Act and includes self-assessment, re-assessment, provisional assessment,summary assessment and best judgement assessment ;

(12) “associated enterprises” shall have the same meaning asassigned to it in section 92A of the Income-tax Act, 1961 ;

Definitions.

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(13) “audit” means the examination of records, returns and otherdocuments maintained or furnished by the registered person under thisAct or the rules made thereunder or under any other law for the timebeing in force to verify the correctness of turnover declared, taxes paid,refund claimed and input tax credit availed, and to assess his compliancewith the provisions of this Act or the rules made thereunder ;

(14) “authorised bank” shall mean a bank or a branch of a bankauthorised by the Central Government to collect the tax or any otheramount payable under this Act ;

(15) “authorised representative” means the representative asreferred to under section 116 ;

(16) “Board” means the Central Board of Excise and Customsconstituted under the Central Boards of Revenue Act, 1963 ;

(17) “business” includes––(a) any trade, commerce, manufacture, profession, vocation,

adventure, wager or any other similar activity, whether or not it isfor a pecuniary benefit ;

(b) any activity or transaction in connection with or incidentalor ancillary to sub-clause (a) ;

(c) any activity or transaction in the nature of sub-clause (a),whether or not there is volume, frequency, continuity or regularityof such transaction ;

(d) supply or acquisition of goods including capital goods andservices in connection with commencement or closure of business ;

(e) provision by a club, association, society, or any such body(for a subscription or any other consideration) of the facilities orbenefits to its members ;

(f) admission, for a consideration, of persons to any premises ;(g) services supplied by a person as the holder of an office which

has been accepted by him in the course or furtherance of his trade,profession or vocation ;

(h) services provided by a race club by way of totalisator or alicence to book maker in such club ; and

(i) any activity or transaction undertaken by the CentralGovernment, a State Government or any local authority in whichthey are engaged as public authorities ;(18) “business vertical” means a distinguishable component of an

enterprise that is engaged in the supply of individual goods or servicesor a group of related goods or services which is subject to risks andreturns that are different from those of the other business verticals.

Explanation.––For the purposes of this clause, factors that shouldbe considered in determining whether goods or services are relatedinclude––

(a) the nature of the goods or services ;(b) the nature of the production processes ;(c) the type or class of customers for the goods or services ;(d) the methods used to distribute the goods or supply of

services ; and(e) the nature of regulatory environment (wherever applicable),

including banking, insurance or public utilities ;

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(19) “capital goods” means goods, the value of which is capitalisedin the books of account of the person claiming the input tax credit andwhich are used or intended to be used in the course or furtherance ofbusiness ;

(20) “casual taxable person” means a person who occasionallyundertakes transactions involving supply of goods or services or both inthe course or furtherance of business, whether as principal, agent or inany other capacity, in the taxable territory where he has no fixed placeof business ;

(21) “central tax” means the central goods and services tax leviedunder section 9 of the Central Goods and Services Tax Act ;

(22) “cess” shall have the same meaning as assigned to it in theGoods and Services Tax (Compensation to States) Act ;

(23) “chartered accountant” means a chartered accountant asdefined in clause (b) of sub-section (1) of section 2 of the CharteredAccountants Act, 1949 ;

(24) “Commissioner” means the Commissioner of State taxappointed under section 3 and includes the Principal Commissioner orChief Commissioner of State tax appointed under section 3 ;

(25) “Commissioner in the Board” means the Commissioner referredto in section 168 of the Central Goods and Services Tax Act ;

(26) “common portal” means the common goods and services taxelectronic portal referred to in section 146 ;

(27) “common working days” shall mean such days in successionwhich are not declared as gazetted holidays by the Central Governmentor the Government of Maharashtra ;

(28) “company secretary” means a company secretary as defined inclause (c) of sub-section (1) of section 2 of the Company SecretariesAct, 1980 ;

(29) “competent authority” means such authority as may be notifiedby the Government ;

(30) “composite supply” means a supply made by a taxable personto a recipient consisting of two or more taxable supplies of goods orservices or both, or any combination thereof, which are naturally bundledand supplied in conjunction with each other in the ordinary course ofbusiness, one of which is a principal supply.

Illustration.- Where goods are packed and transported withinsurance, the supply of goods, packing materials, transport andinsurance is a composite supply and supply of goods is a principal supply ;

(31) “consideration” in relation to the supply of goods or servicesor both includes––

(a) any payment made or to be made, whether in money orotherwise, in respect of, in response to, or for the inducement of,the supply of goods or services or both, whether by the recipient orby any other person but shall not include any subsidy given by theCentral Government or a State Government ;

(b) the monetary value of any act or forbearance, in respect of,in response to, or for the inducement of, the supply of goods or

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services or both, whether by the recipient or by any other personbut shall not include any subsidy given by the Central Governmentor a State Government :

Provided that a deposit given in respect of the supply of goodsor services or both shall not be considered as payment made forsuch supply unless the supplier applies such deposit asconsideration for the said supply ;(32) “continuous supply of goods” means a supply of goods which is

provided, or agreed to be provided, continuously or on recurrent basis,under a contract, whether or not by means of a wire, cable, pipeline orother conduit, and for which the supplier invoices the recipient on aregular or periodic basis and includes supply of such goods as theGovernment may, subject to such conditions, as it may, by notification,specify ;

(33) “continuous supply of services” means a supply of serviceswhich is provided, or agreed to be provided, continuously or on recurrentbasis, under a contract, for a period exceeding three months with periodicpayment obligations and includes supply of such services as theGovernment may, subject to such conditions, as it may, by notification,specify ;

(34) “conveyance” includes a vessel, an aircraft and a vehicle ;(35) “cost accountant” means a cost accountant as defined in

clause (c) of sub-section (1) of section 2 of the Cost and Works AccountantsAct, 1959 ;

(36) “Council” means the Goods and Services Tax Councilestablished under article 279A of the Constitution ;

(37) “credit note” means a document issued by a registered personunder sub-section (1) of section 34 ;

(38) “debit note” means a document issued by a registered personunder sub-section (3) of section 34 ;

(39) “deemed exports” means such supplies of goods as may benotified under section 147 ;

(40) “designated authority” means such authority as may be notifiedby the Commissioner ;

(41) “document” includes written or printed record of any sort andelectronic record as defined in clause (t) of section 2 of the InformationTechnology Act, 2000 ;

(42) “drawback” in relation to any goods manufactured in India andexported, means the rebate of duty, tax or cess chargeable on anyimported inputs or on any domestic inputs or input services used in themanufacture of such goods ;

(43) “electronic cash ledger” means the electronic cash ledgerreferred to in sub-section (1) of section 49 ;

(44) “electronic commerce” means the supply of goods or servicesor both, including digital products over digital or electronic network ;

(45) “electronic commerce operator” means any person who owns,operates or manages digital or electronic facility or platform forelectronic commerce ;

(46) “electronic credit ledger” means the electronic credit ledgerreferred to in sub-section (2) of section 49 ;

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(47) “exempt supply” means supply of any goods or services or bothwhich attracts nil rate of tax or which may be wholly exempt from taxunder section 11, or under section 6 of the Integrated Goods and ServicesTax Act, and includes non-taxable supply ;

(48) “existing law” means any law, notification, order, rule orregulation relating to levy and collection of duty or tax on goods orservices or both passed or made before the commencement of this Act bythe Legislature or any Authority or person having the power to makesuch law, notification, order, rule or regulation ;

(49) “family” means,—(i) the spouse and children of the person, and(ii) the parents, grand-parents, brothers and sisters of the

person if they are wholly or mainly dependent on the said person ;(50) “fixed establishment” means a place (other than the registered

place of business) which is characterised by a sufficient degree ofpermanence and suitable structure in terms of human and technicalresources to supply services, or to receive and use services for its ownneeds ;

(51) “Fund” means the Consumer Welfare Fund established undersection 57 ;

(52) “goods’’ means every kind of movable property other than moneyand securities but includes actionable claim, growing crops, grass andthings attached to or forming part of the land which are agreed to besevered before supply or under a contract of supply ;

(53) “Government” means the Government of Maharashtra ;(54) “Goods and Services Tax (Compensation to States) Act” means

the Goods and Services Tax (Compensation to States) Act, 2017 ;

(55) “goods and services tax practitioner” means any person whohas been approved under section 48 to act as such practitioner ;

(56) “India” means the territory of India as referred to in article 1of the Constitution, its territorial waters, seabed and sub-soil underlyingsuch waters, continental shelf, exclusive economic zone or any othermaritime zone as referred to in the Territorial Waters, Continental Shelf,Exclusive Economic Zone and other Maritime Zones Act, 1976, and theair space above its territory and territorial waters ;

(57) “Integrated Goods and Services Tax Act” means the IntegratedGoods and Services Tax Act, 2017 ;

(58) “integrated tax” means the integrated goods and services taxlevied under the Integrated Goods and Services Tax Act ;

(59) “input” means any goods other than capital goods used orintended to be used by a supplier in the course or furtherance of business ;

(60) “input service” means any service used or intended to be usedby a supplier in the course or furtherance of business ;

(61) “Input Service Distributor” means an office of the supplier ofgoods or services or both which receives tax invoices issued under section31 towards the receipt of input services and issues a prescribed documentfor the purposes of distributing the credit of central tax, State tax,integrated tax or Union territory tax paid on the said services to asupplier of taxable goods or services or both having the same PermanentAccount Number as that of the said office ;

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(62) “input tax” in relation to a registered person, means the centraltax, State tax, integrated tax or Union territory tax charged on any supplyof goods or services or both made to him and includes—

(a) the integrated goods and services tax charged on import ofgoods ;

(b) the tax payable under the provisions of sub-sections (3) and(4) of section 9 ;

(c) the tax payable under the provisions of sub-sections (3) and(4) of section 5 of the Integrated Goods and Services Tax Act ; or

(d) the tax payable under the provisions of sub-sections (3) and(4) of section 9 of the Central Goods and Services Tax Act,but does not include the tax paid under the composition levy ;(63) “input tax credit” means the credit of input tax ;(64) “intra-State supply of goods” shall have the same meaning as

assigned to it in section 8 of the Integrated Goods and Services Tax Act ;(65) “intra-State supply of services” shall have the same meaning

as assigned to it in section 8 of the Integrated Goods and Services TaxAct ;

(66) “invoice” or “tax invoice” means the tax invoice referred to insection 31 ;

(67) “inward supply” in relation to a person, shall mean receipt ofgoods or services or both whether by purchase, acquisition or any othermeans, with or without consideration ;

(68) “job work” means any treatment or process undertaken by aperson on goods belonging to another registered person and theexpression “job worker” shall be construed accordingly ;

(69) “local authority” means––(a) a “Panchayat” as defined in clause (d) of article 243 of the

Constitution ;(b) a “Municipality” as defined in clause (e) of article 243P of

the Constitution ;(c) a Municipal Committee, a Zilla Parishad, a District Board,

and any other authority legally entitled to, or entrusted by theCentral Government or any State Government with the control ormanagement of a municipal or local fund ;

(d) a Cantonment Board as defined in section 3 of theCantonments Act, 2006 ;

(e) a Regional Council or a District Council constituted underthe Sixth Schedule to the Constitution ;

(f) a Development Board constituted under article 371 of theConstitution ; or

(g) a Regional Council constituted under article 371A of theConstitution ;(70) “location of the recipient of services” means,-

(a) where a supply is received at a place of business for whichthe registration has been obtained, the location of such place ofbusiness ;

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(b) where a supply is received at a place other than the place ofbusiness for which registration has been obtained (a fixedestablishment elsewhere), the location of such fixed establishment ;

(c) where a supply is received at more than one establishment,whether the place of business or fixed establishment, the locationof the establishment most directly concerned with the receipt ofthe supply ; and

(d) in absence of such places, the location of the usual place ofresidence of the recipient ;(71) “location of the supplier of services” means,-

(a) where a supply is made from a place of business for whichthe registration has been obtained, the location of such place ofbusiness ;

(b) where a supply is made from a place other than the place ofbusiness for which registration has been obtained (a fixedestablishment elsewhere), the location of such fixed establishment ;

(c) where a supply is made from more than one establishment,whether the place of business or fixed establishment, the locationof the establishment most directly concerned with the provisions ofthe supply ; and

(d) in absence of such places, the location of the usual place ofresidence of the supplier ;(72) “manufacture” means processing of raw material or inputs in

any manner that results in emergence of a new product having a distinctname, character and use and the term “manufacturer” shall be construedaccordingly ;

(73) “market value” shall mean the full amount which a recipient ofa supply is required to pay in order to obtain the goods or services orboth of like kind and quality at or about the same time and at the samecommercial level where the recipient and the supplier are not related ;

(74) “mixed supply” means two or more individual supplies of goodsor services, or any combination thereof, made in conjunction with eachother by a taxable person for a single price where such supply does notconstitute a composite supply.

Illustration : A supply of a package consisting of canned foods,sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices whensupplied for a single price is a mixed supply. Each of these items can besupplied separately and is not dependent on any other. It shall not be amixed supply if these items are supplied separately ;

(75) “money” means the Indian legal tender or any foreign currency,cheque, promissory note, bill of exchange, letter of credit, draft, payorder, traveller cheque, money order, postal or electronic remittance orany other instrument recognized by the Reserve Bank of India whenused as a consideration to settle an obligation or exchange with Indianlegal tender of another denomination but shall not include any currencythat is held for its numismatic value ;

(76) “motor vehicle” shall have the same meaning as assigned to itin clause (28) of section 2 of the Motor Vehicles Act, 1988 ;

(77) “non-resident taxable person” means any person whooccasionally undertakes transactions involving supply of goods orservices or both, whether as principal or agent or in any other capacity,but who has no fixed place of business or residence in India ;

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(78) “non-taxable supply’’ means a supply of goods or services orboth which is not leviable to tax under this Act or under the IntegratedGoods and Services Tax Act ;

(79) “non-taxable territory” means the territory which is outsidethe taxable territory ;

(80) “notification” means a notification published in the OfficialGazette and the expressions ‘notify’ and ‘notified’ shall be construedaccordingly ;

(81) “other territory” includes territories other than thosecomprising in a State and those referred to in sub-clauses (a) to (e) ofclause (114) ;

(82) “output tax” in relation to a taxable person, means the taxchargeable under this Act on taxable supply of goods or services or bothmade by him or by his agent but excludes tax payable by him on reversecharge basis ;

(83) “outward supply” in relation to a taxable person, means supplyof goods or services or both, whether by sale, transfer, barter, exchange,licence, rental, lease or disposal or any other mode, made or agreed tobe made by such person in the course or furtherance of business ;

(84) “person” includes—(a) an individual ;(b) a Hindu Undivided Family ;(c) a company ;(d) a firm ;(e) a Limited Liability Partnership ;(f) an association of persons or a body of individuals, whether

incorporated or not, in India or outside India ;(g) any corporation established by or under any Central Act,

State Act or Provincial Act or a Government company as defined inclause (45) of section 2 of the Companies Act, 2013 ;

(h) any body corporate incorporated by or under the laws of acountry outside India ;

(i) a co-operative society registered under any law relating toco-operative societies ;

(j) a local authority ;(k) Central Government or a State Government ;(l) society as defined under the Societies Registration Act, 1860 ;

(m) trust ; and(n) every artificial juridical person, not falling within any of

the above ;(85) “place of business” includes––

(a) a place from where the business is ordinarily carried on,and includes a warehouse, a godown or any other place where ataxable person stores his goods, supplies or receives goods orservices or both ; or

(b) a place where a taxable person maintains his books ofaccount ; or

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(c) a place where a taxable person is engaged in businessthrough an agent, by whatever name called ;(86) “place of supply” means the place of supply as referred to in

Chapter V of the Integrated Goods and Services Tax Act ;(87) “prescribed’’ means prescribed by rules made under this Act

on the recommendations of the Council ;(88) “principal” means a person on whose behalf an agent carries

on the business of supply or receipt of goods or services or both ;(89) “principal place of business” means the place of business

specified as the principal place of business in the certificate ofregistration ;

(90) “principal supply” means the supply of goods or services whichconstitutes the predominant element of a composite supply and to whichany other supply forming part of that composite supply is ancillary ;

(91) “proper officer” in relation to any function to be performedunder this Act, means the Commissioner or the officer of the State taxwho is assigned that function by the Commissioner ;

(92) “quarter” shall mean a period comprising three consecutivecalendar months, ending on the last day of March, June, September andDecember of a calendar year ;

(93) “recipient” of supply of goods or services or both, means—(a) where a consideration is payable for the supply of goods or

services or both, the person who is liable to pay that consideration ;(b) where no consideration is payable for the supply of goods, the

person to whom the goods are delivered or made available, or to whompossession or use of the goods is given or made available ; and

(c) where no consideration is payable for the supply of a service, theperson to whom the service is rendered,

and any reference to a person to whom a supply is made shall beconstrued as a reference to the recipient of the supply and shall includean agent acting as such on behalf of the recipient in relation to the goodsor services or both supplied ;

(94) “registered person” means a person who is registered undersection 25 but does not include a person having a Unique IdentityNumber ;

(95) “regulations” means the regulations made by the Governmentunder this Act on the recommendations of the Council ;

(96) “removal’’ in relation to goods, means-(a) despatch of the goods for delivery by the supplier thereof or by

any other person acting on behalf of such supplier ; or(b) collection of the goods by the recipient thereof or by any other

person acting on behalf of such recipient ;(97) “return” means any return prescribed or otherwise required

to be furnished by or under this Act or the rules made thereunder ;(98) “reverse charge’’ means the liability to pay tax by the recipient

of supply of goods or services or both instead of the supplier of suchgoods or services or both under sub-section (3) or sub-section (4) ofsection 9, or under sub-section (3) or sub-section (4) of section 5 of theIntegrated Goods and Services Tax Act ;


(99) “Revisional Authority” means an authority appointed orauthorised for revision of decision or orders as referred to insection 108 ;

(100) “Schedule” means a Schedule appended to this Act ;(101) “securities” shall have the same meaning as assigned to it in

clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 ;

(102) “services” means anything other than goods, money andsecurities but includes activities relating to the use of money or itsconversion by cash or by any other mode, from one form, currency ordenomination, to another form, currency or denomination for which aseparate consideration is charged ;

(103) “State” means the State of Maharashtra ;(104) “State tax” means the tax levied under this Act ;(105) “supplier” in relation to any goods or services or both, shall

mean the person supplying the said goods or services or both and shallinclude an agent acting as such on behalf of such supplier in relation tothe goods or services or both supplied ;

(106) “tax period’’ means the period for which the return is requiredto be furnished ;

(107) “taxable person” means a person who is registered or liableto be registered under section 22 or section 24 ;

(108) “taxable supply’’ means a supply of goods or services or bothwhich is leviable to tax under this Act ;

(109) “taxable territory’’ means the territory to which the provisionsof this Act apply ;

(110) “telecommunication service” means service of any description(including electronic mail, voice mail, data services, audio text services,video text services, radio paging and cellular mobile telephone services)which is made available to users by means of any transmission orreception of signs, signals, writing, images and sounds or intelligence ofany nature, by wire, radio, visual or other electromagnetic means ;

(111) “the Central Goods and Services Tax Act” means the CentralGoods and Services Tax Act, 2017 ;

(112) “turnover in State” or “turnover in Union territory” meansthe aggregate value of all taxable supplies (excluding the value of inwardsupplies on which tax is payable by a person on reverse charge basis)and exempt supplies made within a State or Union territory by a taxableperson, exports of goods or services or both and inter-State supplies ofgoods or services or both made from the State or Union territory by thesaid taxable person but excludes central tax, State tax, Union territorytax, integrated tax and cess ;

(113) “usual place of residence” means––(a) in case of an individual, the place where he ordinarily resides ;(b) in other cases, the place where the person is incorporated or

otherwise legally constituted ;(114) “Union territory” means the territory of,—

(a) the Andaman and Nicobar Islands ;(b) Lakshadweep ;(c) Dadra and Nagar Haveli ;

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(d) Daman and Diu ;(e) Chandigarh ; and(f) other territory.Explanation.—For the purposes of this Act, each of the

territories specified in sub-clauses (a) to (f) shall be considered tobe a separate Union territory ;(115) “Union territory tax” means the Union territory goods and

services tax levied under the Union Territory Goods and Services TaxAct ;

(116) “Union Territory Goods and Services Tax Act” means theUnion Territory Goods and Services Tax Act, 2017 ;

(117) “valid return” means a return furnished under sub-section(1) of section 39 on which self-assessed tax has been paid in full ;

(118) “voucher” means an instrument where there is an obligationto accept it as consideration or part consideration for a supply of goodsor services or both and where the goods or services or both to be suppliedor the identities of their potential suppliers are either indicated on theinstrument itself or in related documentation, including the terms andconditions of use of such instrument ;

(119) “works contract” means a contract for building, construction,fabrication, completion, erection, installation, fitting out, improvement,modification, repair, maintenance, renovation, alteration or commissioningof any immovable property wherein transfer of property in goods(whether as goods or in some other form) is involved in the execution ofsuch contract ;

(120) words and expressions used and not defined in this Act butdefined in the Integrated Goods and Services Tax Act, the Central Goodsand Services Tax Act, the Union Territory Goods and Services Tax Actand the Goods and Services Tax (Compensation to States) Act shall havethe same meanings as assigned to them in those Acts.

CHAPTER IIADMINISTRATION

3. The Government shall, by notification, appoint the following classesof officers for the purposes of this Act, namely :––

(a) Commissioner of State tax,(b) Special Commissioners of State tax,(c) Additional Commissioners of State tax,(d) Joint Commissioners of State tax,(e) Deputy Commissioners of State tax,(f) Assistant Commissioners of State tax, and(g) any other class of officers as it may deem fit :Provided that, the officers appointed under the Maharashtra Value

Added Tax Act, 2002, shall be deemed to be the officers appointed underthe provisions of this Act.

4. (1) The Government may, in addition to the officers as may be notifiedunder section 3, appoint such persons as it may think fit to be the officersunder this Act.

14 of2017.

Officersunder this

Act.

Mah.IX of2005.

Appoint-ment ofofficers.

10


(2) The Commissioner shall have jurisdiction over the whole of the State,the Special Commissioner and an Additional Commissioner in respect of allor any of the functions assigned to them, shall have jurisdiction over thewhole of the State or where the State Government so directs, over any localarea thereof, and all other officers shall, subject to such conditions as may bespecified, have jurisdiction over the whole of the State or over such localareas as the Commissioner may, by order, specify.

5. (1) Subject to such conditions and limitations as the Commissionermay impose, an officer of State tax may exercise the powers and dischargethe duties conferred or imposed on him under this Act.

(2) An officer of State tax may exercise the powers and discharge theduties conferred or imposed under this Act on any other officer of State taxwho is subordinate to him.

(3) The Commissioner may, subject to such conditions and limitationsas may be specified in this behalf by him, delegate his powers to any otherofficer who is subordinate to him.

(4) Notwithstanding anything contained in this section, an AppellateAuthority shall not exercise the powers and discharge the duties conferredor imposed on any other officer of State tax.

6. (1) Without prejudice to the provisions of this Act, the officersappointed under the Central Goods and Services Tax Act are authorised tobe the proper officers for the purposes of this Act, subject to such conditionsas the Government shall, on the recommendations of the Council, bynotification, specify.

(2) Subject to the conditions specified in the notification issued undersub-section (1),—

(a) where any proper officer issues an order under this Act, he shallalso issue an order under the Central Goods and Services Tax Act, asauthorised by the said Act under intimation to the jurisdictional officerof central tax ;

(b) where a proper officer under the Central Goods and ServicesTax Act has initiated any proceedings on a subject matter, no proceedingsshall be initiated by the proper officer under this Act on the same subjectmatter.

(3) Any proceedings for rectification, appeal and revision, whereverapplicable, of any order passed by an officer appointed under this Act, shallnot lie before an officer appointed under the Central Goods and Services TaxAct.

CHAPTER IIILEVY AND COLLECTION OF TAX

7. (1) For the purposes of this Act, the expression “supply” includes––(a) all forms of supply of goods or services or both such as sale,

transfer, barter, exchange, license, rental, lease or disposal made oragreed to be made for a consideration by a person in the course orfurtherance of business ;

(b) import of services for a consideration whether or not in thecourse or furtherance of business ;

(c) the activities specified in Schedule I, made or agreed to be madewithout a consideration ; and

Powers ofofficers.

Authorisa-tion ofofficers ofcentral taxas properofficer incertaincircum-stances.

Scope ofsupply.


(d) the activities to be treated as supply of goods or supply of servicesas referred to in Schedule II.

(2) Notwithstanding anything contained in sub-section (1),––

(a) activities or transactions specified in Schedule III ; or

(b) such activities or transactions undertaken by the CentralGovernment, a State Government or any local authority in which theyare engaged as public authorities, as may be notified by the Governmenton the recommendations of the Council,

shall be treated neither as a supply of goods nor a supply of services.

(3) Subject to the provisions of sub-sections (1) and (2), the Governmentmay, on the recommendations of the Council, specify, by notification, thetransactions that are to be treated as—

(a) a supply of goods and not as a supply of services ; or

(b) a supply of services and not as a supply of goods.

8. The tax liability on a composite or a mixed supply shall bedetermined in the following manner, namely : —

(a) a composite supply comprising two or more supplies, one of whichis a principal supply, shall be treated as a supply of such principal supply ;and

(b) a mixed supply comprising two or more supplies shall be treatedas a supply of that particular supply which attracts the highest rate oftax.

9. (1) Subject to the provisions of sub-section (2), there shall be levied atax called the Maharashtra goods and services tax on all intra-State suppliesof goods or services or both, except on the supply of alcoholic liquor for humanconsumption, on the value determined under section 15 and at such rates,not exceeding twenty per cent., as may be notified by the Government on therecommendations of the Council and collected in such manner as may beprescribed and shall be paid by the taxable person.

(2) The State tax on the supply of petroleum crude, high speed diesel,motor spirit (commonly known as petrol), natural gas and aviation turbinefuel, shall be levied with effect from such date as may be notified by theGovernment on the recommendations of the Council.

(3) The Government may, on the recommendations of the Council, bynotification, specify categories of supply of goods or services or both, the taxon which shall be paid on reverse charge basis by the recipient of such goodsor services or both and all the provisions of this Act shall apply to suchrecipient as if he is the person liable for paying the tax in relation to thesupply of such goods or services or both.

(4) The State tax in respect of the supply of taxable goods or services orboth by a supplier, who is not registered, to a registered person shall be paidby such person on reverse charge basis as the recipient and all the provisionsof this Act shall apply to such recipient as if he is the person liable for payingthe tax in relation to the supply of such goods or services or both.

(5) The Government may, on the recommendations of the Council, bynotification, specify categories of services the tax on intra-State supplies ofwhich shall be paid by the electronic commerce operator if such services aresupplied through it, and all the provisions of this Act shall apply to such

Taxliability oncompositeand mixed

supplies.

Levy andcollection.


electronic commerce operator as if he is the supplier liable for paying the taxin relation to the supply of such services :

Provided that where an electronic commerce operator does not have aphysical presence in the taxable territory, any person representing suchelectronic commerce operator for any purpose in the taxable territory shallbe liable to pay tax :

Provided further that where an electronic commerce operator does nothave a physical presence in the taxable territory and also he does not have arepresentative in the said territory, such electronic commerce operator shallappoint a person in the taxable territory for the purpose of paying tax andsuch person shall be liable to pay tax.

10. (1) Notwithstanding anything to the contrary contained in this Actbut subject to the provisions of sub-sections (3) and (4) of section 9, a registeredperson, whose aggregate turnover in the preceding financial year did notexceed fifty lakh rupees may opt to pay, in lieu of the tax payable by him, anamount calculated at such rate as may be prescribed, but not exceeding,—

(a) one per cent. of the turnover in State in case of a manufacturer,(b) two and a half per cent. of the turnover in State in case of persons

engaged in making supplies referred to in clause (b) of paragraph 6 ofSchedule II, and

(c) half per cent. of the turnover in State in case of other suppliers,subject to such conditions and restrictions as may be prescribed :

Provided that the Government may, by notification, increase the saidlimit of fifty lakh rupees to such higher amount, not exceeding one crorerupees, as may be recommended by the Council.

(2) The registered person shall be eligible to opt under sub-section (1),if—

(a) he is not engaged in the supply of services other than suppliesreferred to in clause (b) of paragraph 6 of Schedule II ;

(b) he is not engaged in making any supply of goods which are notleviable to tax under this Act ;

(c) he is not engaged in making any inter-State outward supplies ofgoods ;

(d) he is not engaged in making any supply of goods through anelectronic commerce operator who is required to collect tax at sourceunder section 52 ; and

(e) he is not a manufacturer of such goods as may be notified by theGovernment on the recommendations of the Council :

Provided that where more than one registered person are havingthe same Permanent Account Number (issued under the Income-taxAct 1961), the registered person shall not be eligible to opt for the schemeunder sub-section (1) unless all such registered persons opt to pay taxunder that sub-section.(3) The option availed of by a registered person under sub-section (1)

shall lapse with effect from the day on which his aggregate turnover duringa financial year exceeds the limit specified under sub-section (1).

(4) A taxable person to whom the provisions of sub-section (1) applyshall not collect any tax from the recipient on supplies made by him nor shallhe be entitled to any credit of input tax.

Compositionlevy.

43 of1961.


(5) If the proper officer has reasons to believe that a taxable person haspaid tax under sub-section (1) despite not being eligible, such person shall,in addition to any tax that may be payable by him under any other provisionsof this Act, be liable to a penalty and the provisions of section 73 or section 74shall, mutatis mutandis, apply for determination of tax and penalty.

11. (1) Where the Government is satisfied that it is necessary in thepublic interest so to do, it may, on the recommendations of the Council, bynotification, exempt generally, either absolutely or subject to such conditionsas may be specified therein, goods or services or both of any specifieddescription from the whole or any part of the tax leviable thereon with effectfrom such date as may be specified in such notification.

(2) Where the Government is satisfied that it is necessary in the publicinterest so to do, it may, on the recommendations of the Council, by specialorder in each case, under circumstances of an exceptional nature to be statedin such order, exempt from payment of tax any goods or services or both onwhich tax is leviable.

(3) The Government may, if it considers necessary or expedient so to dofor the purpose of clarifying the scope or applicability of any notificationissued under sub-section (1) or order issued under sub-section (2), insert anexplanation in such notification or order, as the case may be, by notificationat any time within one year of issue of the notification under sub-section (1)or order under sub-section (2), and every such explanation shall have effectas if it had always been the part of the first such notification or order, as thecase may be.

(4) Any notification issued by the Central Government, on therecommendations of the Council, under sub-section (1) of section 11 or orderissued under sub-section (2) of the said section of the Central Goods andServices Tax Act shall be deemed to be a notification or, as the case may be,an order issued under this Act.

Explanation.––For the purposes of this section, where an exemption inrespect of any goods or services or both from the whole or part of the taxleviable thereon has been granted absolutely, the registered person supplyingsuch goods or services or both shall not collect the tax, in excess of the effectiverate, on such supply of goods or services or both.

CHAPTER IVTIME AND VALUE OF SUPPLY

12. (1) The liability to pay tax on goods shall arise at the time of supply,as determined in accordance with the provisions of this section.

(2) The time of supply of goods shall be the earlier of the following dates,namely :—

(a) the date of issue of invoice by the supplier or the last date onwhich he is required, under sub-section (1) of section 31, to issue theinvoice with respect to the supply ; or

(b) the date on which the supplier receives the payment with respectto the supply :

Provided that where the supplier of taxable goods receives an amountup to one thousand rupees in excess of the amount indicated in the taxinvoice, the time of supply to the extent of such excess amount shall, atthe option of the said supplier, be the date of issue of invoice in respectof such excess amount.

Power togrant

exemptionfrom tax.

Time ofsupply of

goods.


Explanation 1.––For the purposes of clauses (a) and (b), “supply”shall be deemed to have been made to the extent it is covered by theinvoice or, as the case may be, the payment.

Explanation 2.––For the purposes of clause (b), “the date on whichthe supplier receives the payment” shall be the date on which thepayment is entered in his books of account or the date on which thepayment is credited to his bank account, whichever is earlier.(3) In case of supplies in respect of which tax is paid or liable to be paid

on reverse charge basis, the time of supply shall be the earliest of the followingdates, namely :—

(a) the date of the receipt of goods ; or(b) the date of payment as entered in the books of account of the

recipient or the date on which the payment is debited in his bank account,whichever is earlier ; or

(c) the date immediately following thirty days from the date of issueof invoice or any other document, by whatever name called, in lieu thereofby the supplier :

Provided that where it is not possible to determine the time of supplyunder clause (a) or clause (b) or clause (c), the time of supply shall be thedate of entry in the books of account of the recipient of supply.(4) In case of supply of vouchers by a supplier, the time of supply shall

be—(a) the date of issue of voucher, if the supply is identifiable at that

point ; or(b) the date of redemption of voucher, in all other cases.

(5) Where it is not possible to determine the time of supply under theprovisions of sub-section (2) or sub-section (3) or sub-section (4), the time ofsupply shall––

(a) in a case where a periodical return has to be filed, be the date onwhich such return is to be filed ; or

(b) in any other case, be the date on which the tax is paid.(6) The time of supply to the extent it relates to an addition in the value

of supply by way of interest, late fee or penalty for delayed payment of anyconsideration shall be the date on which the supplier receives such additionin value.

13. (1) The liability to pay tax on services shall arise at the time ofsupply, as determined in accordance with the provisions of this section.

(2) The time of supply of services shall be the earliest of the followingdates, namely :—

(a) the date of issue of invoice by the supplier, if the invoice is issuedwithin the period prescribed under sub-section (2) of section 31 or thedate of receipt of payment, whichever is earlier ; or

(b) the date of provision of service, if the invoice is not issued withinthe period prescribed under sub-section (2) of section 31 or the date ofreceipt of payment, whichever is earlier ; or

(c) the date on which the recipient shows the receipt of services inhis books of account, in a case where the provisions of clause (a) or clause(b) do not apply :

Provided that where the supplier of taxable service receives anamount upto one thousand rupees in excess of the amount indicated in

Time ofsupply ofservices.

¦ÉÉMÉ +É`ö--94-3


the tax invoice, the time of supply to the extent of such excess amountshall, at the option of the said supplier, be the date of issue of invoicerelating to such excess amount.

Explanation.––For the purposes of clauses (a) and (b)—(i) the supply shall be deemed to have been made to the extent

it is covered by the invoice or, as the case may be, the payment ;(ii) “the date of receipt of payment” shall be the date on which

the payment is entered in the books of account of the supplier orthe date on which the payment is credited to his bank account,whichever is earlier.

(3) In case of supplies in respect of which tax is paid or liable to be paidon reverse charge basis, the time of supply shall be the earlier of the followingdates, namely :––

(a) the date of payment as entered in the books of account of therecipient or the date on which the payment is debited in his bank account,whichever is earlier ; or

(b) the date immediately following sixty days from the date of issueof invoice or any other document, by whatever name called, in lieu thereofby the supplier :

Provided that where it is not possible to determine the time of supplyunder clause (a) or clause (b), the time of supply shall be the date ofentry in the books of account of the recipient of supply :

Provided further that in case of supply by associated enterprises,where the supplier of service is located outside India, the time of supplyshall be the date of entry in the books of account of the recipient ofsupply or the date of payment, whichever is earlier.(4) In case of supply of vouchers by a supplier, the time of supply shall

be––(a) the date of issue of voucher, if the supply is identifiable at that

point ; or(b) the date of redemption of voucher, in all other cases.

(5) Where it is not possible to determine the time of supply under theprovisions of sub-section (2) or sub-section (3) or sub-section (4), the time ofsupply shall––

(a) in a case where a periodical return has to be filed, be the date onwhich such return is to be filed ; or

(b) in any other case, be the date on which the tax is paid.(6) The time of supply to the extent it relates to an addition in the value

of supply by way of interest, late fee or penalty for delayed payment of anyconsideration shall be the date on which the supplier receives such additionin value.

14. Notwithstanding anything contained in section 12 or section 13,the time of supply, where there is a change in the rate of tax in respect ofgoods or services or both, shall be determined in the following manner,namely :––

(a) in case the goods or services or both have been supplied beforethe change in rate of tax,––

(i) where the invoice for the same has been issued and thepayment is also received after the change in rate of tax, the time of

Change inrate of taxin respectof supply

of goods orservices.


supply shall be the date of receipt of payment or the date of issue ofinvoice, whichever is earlier ; or

(ii) where the invoice has been issued prior to the change inrate of tax but payment is received after the change in rate of tax,the time of supply shall be the date of issue of invoice ; or

(iii) where the payment has been received before the change inrate of tax, but the invoice for the same is issued after the change inrate of tax, the time of supply shall be the date of receipt of payment ;(b) in case the goods or services or both have been supplied after

the change in rate of tax,––(i) where the payment is received after the change in rate of

tax but the invoice has been issued prior to the change in rate oftax, the time of supply shall be the date of receipt of payment ; or

(ii) where the invoice has been issued and payment is receivedbefore the change in rate of tax, the time of supply shall be the dateof receipt of payment or date of issue of invoice, whichever is earlier ;or

(iii) where the invoice has been issued after the change in rateof tax but the payment is received before the change in rate of tax,the time of supply shall be the date of issue of invoice :

Provided that the date of receipt of payment shall be the dateof credit in the bank account if such credit in the bank account isafter four working days from the date of change in the rate of tax.

Explanation.––For the purposes of this section, “the date ofreceipt of payment” shall be the date on which the payment isentered in the books of account of the supplier or the date on whichthe payment is credited to his bank account, whichever is earlier.

15. (1) The value of a supply of goods or services or both shall be thetransaction value, which is the price actually paid or payable for the saidsupply of goods or services or both where the supplier and the recipient ofthe supply are not related and the price is the sole consideration for thesupply.

(2) The value of supply shall include–––(a) any taxes, duties, cesses, fees and charges levied under any law

for the time being in force other than this Act, the Central Goods andServices Tax Act and the Goods and Services Tax (Compensation toStates) Act, if charged separately by the supplier ;

(b) any amount that the supplier is liable to pay in relation to suchsupply but which has been incurred by the recipient of the supply andnot included in the price actually paid or payable for the goods or servicesor both ;

(c) incidental expenses, including commission and packing, chargedby the supplier to the recipient of a supply and any amount charged foranything done by the supplier in respect of the supply of goods or servicesor both at the time of, or before delivery of goods or supply of services ;

(d) interest or late fee or penalty for delayed payment of anyconsideration for any supply ; and

(e) subsidies directly linked to the price excluding subsidiesprovided by the Central Government and State Governments.

Value oftaxablesupply.

¦ÉÉMÉ +É`ö--94-3+


Explanation.––For the purposes of this sub-section, the amount ofsubsidy shall be included in the value of supply of the supplier whoreceives the subsidy.

(3) The value of the supply shall not include any discount which is given—(a) before or at the time of the supply if such discount has been duly

recorded in the invoice issued in respect of such supply ; and(b) after the supply has been effected, if—

(i) such discount is established in terms of an agreement enteredinto at or before the time of such supply and specifically linked torelevant invoices ; and

(ii) input tax credit as is attributable to the discount on thebasis of document issued by the supplier has been reversed by therecipient of the supply.

(4) Where the value of the supply of goods or services or both cannot bedetermined under sub-section (1), the same shall be determined in suchmanner as may be prescribed.

(5) Notwithstanding anything contained in sub-section (1) or sub-section(4), the value of such supplies as may be notified by the Government on therecommendations of the Council shall be determined in such manner as maybe prescribed.

Explanation.—For the purposes of this Act,—(a) persons shall be deemed to be “related persons’’ if —

(i) such persons are officers or directors of one another’sbusinesses ;

(ii) such persons are legally recognised partners in business ;(iii) such persons are employer and employee ;(iv) any person directly or indirectly owns, controls or holds

twenty-five per cent. or more of the outstanding voting stock orshares of both of them ;

(v) one of them directly or indirectly controls the other ;(vi) both of them are directly or indirectly controlled by a third

person ;(vii) together they directly or indirectly control a third person ;

or(viii) they are members of the same family ;

(b) the term “person” also includes legal persons ;(c) persons who are associated in the business of one another in

that one is the sole agent or sole distributor or sole concessionaire,howsoever described, of the other, shall be deemed to be related.

CHAPTER VINPUT TAX CREDIT

16. (1) Every registered person shall, subject to such conditions andrestrictions as may be prescribed and in the manner specified in section 49,be entitled to take credit of input tax charged on any supply of goods orservices or both to him which are used or intended to be used in the courseor furtherance of his business and the said amount shall be credited to theelectronic credit ledger of such person.

Eligibilityand

conditionsfor takinginput tax

credit.


(2) Notwithstanding anything contained in this section, no registeredperson shall be entitled to the credit of any input tax in respect of any supplyof goods or services or both to him unless,––

(a) he is in possession of a tax invoice or debit note issued by asupplier registered under this Act, or such other tax paying documentsas may be prescribed ;

(b) he has received the goods or services or both.Explanation.—For the purposes of this clause, it shall be deemed

that the registered person has received the goods where the goods aredelivered by the supplier to a recipient or any other person on thedirection of such registered person, whether acting as an agent orotherwise, before or during movement of goods, either by way of transferof documents of title to goods or otherwise ;

(c) subject to the provisions of section 41, the tax charged in respectof such supply has been actually paid to the Government, either in cashor through utilisation of input tax credit admissible in respect of thesaid supply ; and

(d) he has furnished the return under section 39 :Provided that where the goods against an invoice are received in

lots or instalments, the registered person shall be entitled to take creditupon receipt of the last lot or instalment :

Provided further that where a recipient fails to pay to the supplierof goods or services or both, other than the supplies on which tax ispayable on reverse charge basis, the amount towards the value of supplyalong with tax payable thereon within a period of one hundred and eightydays from the date of issue of invoice by the supplier, an amount equalto the input tax credit availed by the recipient shall be added to hisoutput tax liability, along with interest thereon, in such manner as maybe prescribed :

Provided also that the recipient shall be entitled to avail of thecredit of input tax on payment made by him of the amount towards thevalue of supply of goods or services or both along with tax payablethereon.(3) Where the registered person has claimed depreciation on the tax

component of the cost of capital goods and plant and machinery under theprovisions of the Income-tax Act, 1961, the input tax credit on the said taxcomponent shall not be allowed.

(4) A registered person shall not be entitled to take input tax credit inrespect of any invoice or debit note for supply of goods or services or bothafter the due date of furnishing of the return under section 39 for the monthof September following the end of financial year to which such invoice orinvoice relating to such debit note pertains or furnishing of the relevantannual return, whichever is earlier.

17. (1) Where the goods or services or both are used by the registeredperson partly for the purpose of any business and partly for other purposes,the amount of credit shall be restricted to so much of the input tax as isattributable to the purposes of his business.

(2) Where the goods or services or both are used by the registered personpartly for effecting taxable supplies including zero-rated supplies under thisAct or under the Integrated Goods and Services Tax Act and partly for

43 of1961.

Apportion-ment ofcredit andblockedcredits.


effecting exempt supplies under the said Acts, the amount of credit shall berestricted to so much of the input tax as is attributable to the said taxablesupplies including zero-rated supplies.

(3) The value of exempt supply under sub-section (2) shall be such asmay be prescribed, and shall include supplies on which the recipient is liableto pay tax on reverse charge basis, transactions in securities, sale of landand, subject to clause (b) of paragraph 5 of Schedule II, sale of building.

(4) A banking company or a financial institution including a non-bankingfinancial company, engaged in supplying services by way of accepting deposits,extending loans or advances shall have the option to either comply with theprovisions of sub-section (2), or avail of, every month, an amount equal tofifty per cent. of the eligible input tax credit on inputs, capital goods andinput services in that month and the rest shall lapse :

Provided that the option once exercised shall not be withdrawn duringthe remaining part of the financial year :

Provided further that the restriction of fifty percent. shall not apply tothe tax paid on supplies made by one registered person to another registeredperson having the same Permanent Account Number.

(5) Notwithstanding anything contained in sub-section (1) of section 16and sub-section (1) of section 18, input tax credit shall not be available inrespect of the following, namely :—

(a) motor vehicles and other conveyances except when they areused––

(i) for making the following taxable supplies, namely :––(A) further supply of such vehicles or conveyances ; or(B) transportation of passengers ; or(C) imparting training on driving, flying, navigating such

vehicles or conveyances ;(ii) for transportation of goods ;

(b) the following supply of goods or services or both :—(i) food and beverages, outdoor catering, beauty treatment,

health services, cosmetic and plastic surgery except where aninward supply of goods or services or both of a particular categoryis used by a registered person for making an outward taxable supplyof the same category of goods or services or both or as an element ofa taxable composite or mixed supply ;

(ii) membership of a club, health and fitness centre ;(iii) rent-a-cab, life insurance and health insurance except

where—(A) the Government notifies the services which are

obligatory for an employer to provide to its employees underany law for the time being in force ; or

(B) such inward supply of goods or services or both of aparticular category is used by a registered person for makingan outward taxable supply of the same category of goods orservices or both or as part of a taxable composite or mixedsupply ; and(iv) travel benefits extended to employees on vacation such as

leave or home travel concession.


(c) works contract services when supplied for construction of animmovable property (other than plant and machinery) except where itis an input service for further supply of works contract service ;

(d) goods or services or both received by a taxable person forconstruction of an immovable property (other than plant or machinery)on his own account including when such goods or services or both areused intercourse or furtherance of business.

Explanation.––For the purposes of clauses (c) and (d), the expression“construction” includes re-construction, renovation, additions oralterations or repairs, to the extent of capitalisation, to the saidimmovable property ;

(e) goods or services or both on which tax has been paid undersection10 ;

(f) goods or services or both received by a non-resident taxableperson except on goods imported by him ;

(g) goods or services or both used for personal consumption ;(h) goods lost, stolen, destroyed, written off or disposed of by way of

gift or free samples ; and(i) any tax paid in accordance with the provisions of sections 74, 129

and 130.(6) The Government may prescribe the manner in which the credit

referred to in sub-sections (1) and (2) may be attributed.Explanation.–– For the purposes of this Chapter and Chapter VI, the

expression “plant and machinery” means apparatus, equipment, andmachinery fixed to earth by foundation or structural support that are usedfor making outward supply of goods or services or both and includes suchfoundation and structural supports but excludes—

(i) land, building or any other civil structures ;(ii) telecommunication towers ; and(iii) pipelines laid outside the factory premises.

18. (1) Subject to such conditions and restrictions as may beprescribed–

(a) a person who has applied for registration under this Act withinthirty days from the date on which he becomes liable to registration andhas been granted such registration shall be entitled to take credit ofinput tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately precedingthe date from which he becomes liable to pay tax under the provisions ofthis Act ;

(b) a person who takes registration under sub-section (3) of section25 shall be entitled to take credit of input tax in respect of inputs held instock and inputs contained in semi-finished or finished goods held instock on the day immediately preceding the date of grant of registration ;

(c) where any registered person ceases to pay tax under section 10,he shall be entitled to take credit of input tax in respect of inputs heldin stock, inputs contained in semi-finished or finished goods held in stockand on capital goods on the day immediately preceding the date fromwhich he becomes liable to pay tax under section 9 :

Provided that the credit on capital goods shall be reduced by suchpercentage points as may be prescribed ;

Availabilityof credit inspecialcircum-stances.


(d) where an exempt supply of goods or services or both by aregistered person becomes a taxable supply, such person shall be entitledto take credit of input tax in respect of inputs held in stock and inputscontained in semi-finished or finished goods held in stock relatable tosuch exempt supply and on capital goods exclusively used for such exemptsupply on the day immediately preceding the date from which such supplybecomes taxable :

Provided that the credit on capital goods shall be reduced by suchpercentage points as may be prescribed.(2) A registered person shall not be entitled to take input tax credit

under sub-section (1) in respect of any supply of goods or services or both tohim after the expiry of one year from the date of issue of tax invoice relatingto such supply.

(3) Where there is a change in the constitution of a registered personon account of sale, merger, demerger, amalgamation, lease or transfer of thebusiness with the specific provisions for transfer of liabilities, the saidregistered person shall be allowed to transfer the input tax credit whichremains unutilised in his electronic credit ledger to such sold, merged,demerged, amalgamated, leased or transferred business in such manner asmay be prescribed.

(4) Where any registered person who has availed of input tax creditopts to pay tax under section 10 or, where the goods or services or bothsupplied by him become wholly exempt, he shall pay an amount, by way ofdebit in the electronic credit ledger or electronic cash ledger, equivalent tothe credit of input tax in respect of inputs held in stock and inputs containedin semi-finished or finished goods held in stock and on capital goods, reducedby such percentage points as may be prescribed, on the day immediatelypreceding the date of exercising of such option or, as the case may be, thedate of such exemption :

Provided that after payment of such amount, the balance of input taxcredit, if any, lying in his electronic credit ledger shall lapse.

(5) The amount of credit under sub-section (1) and the amount payableunder sub-section (4) shall be calculated in such manner as may be prescribed.

(6) In case of supply of capital goods or plant and machinery, on whichinput tax credit has been taken, the registered person shall pay an amountequal to the input tax credit taken on the said capital goods or plant andmachinery reduced by such percentage points as may be prescribed or thetax on the transaction value of such capital goods or plant and machinerydetermined under section 15, whichever is higher :

Provided that where refractory bricks, moulds and dies, jigs and fixturesare supplied as scrap, the taxable person may pay tax on the transactionvalue of such goods determined under section 15.

19. (1) The principal shall, subject to such conditions and restrictionsas may be prescribed, be allowed input tax credit on inputs sent to a jobworker for job work.

(2) Notwithstanding anything contained in clause (b) of sub-section (2)of section 16, the principal shall be entitled to take credit of input tax oninputs even if the inputs are directly sent to a jobworker for jobwork withoutbeing first brought to his place of business.

Takinginput taxcredit in

respect ofinputs and

capitalgoods sent

for jobwork.


(3) Where the inputs sent for jobwork are not received back by theprincipal after completion of jobwork or otherwise or are not supplied fromthe place of business of the jobworker in accordance with clause (a) or clause(b) of sub-section (1) of section 143 within one year of being sent out, it shallbe deemed that such inputs had been supplied by the principal to thejobworker on the day when the said inputs were sent out :

Provided that where the inputs are sent directly to a jobworker, theperiod of one year shall be counted from the date of receipt of inputs by thejobworker.

(4) The principal shall, subject to such conditions and restrictions asmay be prescribed, be allowed input tax credit on capital goods sent to ajobworker for jobwork.

(5) Notwithstanding anything contained in clause (b) of sub-section (2)of section 16, the principal shall be entitled to take credit of input tax oncapital goods even if the capital goods are directly sent to a jobworker forjobwork without being first brought to his place of business.

(6) Where the capital goods sent for jobwork are not received back bythe principal within a period of three years of being sent out, it shall bedeemed that such capital goods had been supplied by the principal to thejobworker on the day when the said capital goods were sent out :

Provided that where the capital goods are sent directly to a jobworker,the period of three years shall be counted from the date of receipt of capitalgoods by the jobworker.

(7) Nothing contained in sub-section (3) or sub-section (6) shall apply tomoulds and dies, jigs and fixtures, or tools sent out to a jobworker for jobwork.

Explanation.—For the purpose of this section, “principal” means theperson referred to in section 143.

20. (1) The Input Service Distributor shall distribute the credit of Statetax as State tax or integrated tax and integrated tax as integrated tax orState tax, by way of issue of document containing the amount of input taxcredit being distributed in such manner as may be prescribed.

(2) The Input Service Distributor may distribute the credit subject tothe following conditions, namely :––

(a) the credit can be distributed to the recipients of credit against adocument containing such details as may be prescribed ;

(b) the amount of the credit distributed shall not exceed the amountof credit available for distribution ;

(c) the credit of tax paid on input services attributable to a recipientof credit shall be distributed only to that recipient ;

(d) the credit of tax paid on input services attributable to more thanone recipient of credit shall be distributed amongst such recipients towhom the input service is attributable and such distribution shall bepro rata on the basis of the turnover in a State or turnover in a Unionterritory of such recipient, during the relevant period, to the aggregateof the turnover of all such recipients to whom such input service isattributable and which are operational in the current year, during thesaid relevant period ;

(e) the credit of tax paid on input services attributable to allrecipients of credit shall be distributed amongst such recipients andsuch distribution shall be pro rata on the basis of the turnover in a State

Manner ofdistributionof credit byInputServiceDistributor.

¦ÉÉMÉ +É`ö--94-4


or turnover in a Union territory of such recipient, during the relevantperiod, to the aggregate of the turnover of all recipients and which areoperational in the current year, during the said relevant period.

Explanation.––For the purposes of this section,––(a) the “relevant period” shall be––

(i) if the recipients of credit have turnover in their Statesor Union territories in the financial year preceding the yearduring which credit is to be distributed, the said financial year ;or

(ii) if some or all recipients of the credit do not have anyturnover in their States or Union territories in the financialyear preceding the year during which the credit is to bedistributed, the last quarter for which details of such turnoverof all the recipients are available, previous to the month duringwhich credit is to be distributed ;(b) the expression “recipient of credit” means the supplier of

goods or services or both having the same Permanent AccountNumber as that of the Input Service Distributor ;

(c) the term “turnover”, in relation to any registered personengaged in the supply of taxable goods as well as goods not taxableunder this Act, means the value of turnover, reduced by the amountof any duty or tax levied under entry 84 of List I of the SeventhSchedule to the Constitution and entry 51 and 54 of List II of thesaid Schedule.

21. Where the Input Service Distributor distributes the credit incontravention of the provisions contained in section 20 resulting in excessdistribution of credit to one or more recipients of credit, the excess credit sodistributed shall be recovered from such recipients along with interest, andthe provisions of section 73 or section 74, as the case may be, shall, mutatismutandis, apply for determination of amount to be recovered.

CHAPTER VIREGISTRATION

22. (1) Every supplier making a taxable supply of goods or services orboth in the State shall be liable to be registered under this Act if his aggregateturnover in a financial year exceeds twenty lakh rupees :

Provided that where such person makes taxable supplies of goods orservices or both from any of the special category States, he shall be liable tobe registered if his aggregate turnover in a financial year exceeds ten lakhrupees.

(2) Every person who, on the day immediately preceding the appointedday, is registered or holds a licence under an existing law, shall be liable tobe registered under this Act with effect from the appointed day.

(3) Where a business carried on by a taxable person registered underthis Act is transferred, whether on account of succession or otherwise, toanother person as a going concern, the transferee or the successor, as thecase may be, shall be liable to be registered with effect from the date of suchtransfer or succession.

(4) Notwithstanding anything contained in sub-sections (1) and (3), in acase of transfer pursuant to sanction of a scheme or an arrangement for

Manner ofrecovery of

creditdistributed

in excess.

Personsliable for

registration.


amalgamation or, as the case may be, de-merger of two or more companiespursuant to an order of a High Court, Tribunal or otherwise, the transfereeshall be liable to be registered, with effect from the date on which the Registrarof Companies issues a certificate of incorporation giving effect to such orderof the High Court or Tribunal.

Explanation.––For the purposes of this section,––(i) the expression “aggregate turnover” shall include all supplies

made by the taxable person, whether on his own account or made onbehalf of all his principals ;

(ii) the supply of goods, after completion of job work, by a registeredjobworker shall be treated as the supply of goods by the principal referredto in section 143, and the value of such goods shall not be included in theaggregate turnover of the registered jobworker ;

(iii) the expression “special category States” shall mean the Statesas specified in sub-clause (g) of clause (4) of article 279A of theConstitution.

23. (1) The following persons shall not be liable to registration,namely :—

(a) any person engaged exclusively in the business of supplyinggoods or services or both that are not liable to tax or wholly exemptfrom tax under this Act or under the Integrated Goods and Services TaxAct ;

(b) an agriculturist, to the extent of supply of produce out ofcultivation of land.(2) The Government may, on the recommendations of the Council, by

notification, specify the category of persons who may be exempted fromobtaining registration under this Act.

24. Notwithstanding anything contained in sub-section (1) of section22, the following categories of persons shall be required to be registeredunder thisAct,—

(i) persons making any inter-State taxable supply ;(ii) casual taxable persons making taxable supply ;(iii) persons who are required to pay tax under reverse charge ;(iv) person who are required to pay tax under sub-section (5) of

section 9 ;(v) non-resident taxable persons making taxable supply ;(vi) persons who are required to deduct tax under section 51,

whether or not separately registered under this Act ;(vii) persons who make taxable supply of goods or services or both

on behalf of other taxable persons whether as an agent or otherwise ;(viii) Input Service Distributor, whether or not separately registered

under this Act ;(ix) persons who supply goods or services or both, other than supplies

specified under sub-section (5) of section 9, through such electroniccommerce operator who is required to collect tax at source undersection 52 ;

(x) every electronic commerce operator ;

Personsnot liablefo rregistration.

Compulsoryregistrationin certaincases.

¦ÉÉMÉ +É`ö--94-4+


(xi) every person supplying online information and data base accessor retrieval services from a place outside India to a person in India,other than a registered person ; and

(xii) such other person or class of persons as may be notified by theGovernment on the recommendations of the Council.

25. (1) Every person who is liable to be registered under section 22 orsection 24 shall apply for registration within thirty days from the date onwhich he becomes liable to registration, in such manner and subject to suchconditions as may be prescribed :

Provided that a casual taxable person or a non-resident taxable personshall apply for registration at least five days prior to the commencement ofbusiness.

Explanation.—Every person who makes a supply from the territorialwaters of India shall obtain registration in the State where the nearest pointof the appropriate baseline is located in the State.

(2) A person seeking registration under this Act shall be granted a singleregistration :

Provided that a person having multiple business verticals in the Statemay be granted a separate registration for each business vertical, subject tosuch conditions as may be prescribed.

(3) A person, though not liable to be registered under section 22 orsection 24 may get himself registered voluntarily, and all provisions of thisAct, as are applicable to a registered person, shall apply to such person.

(4) A person who has obtained or is required to obtain more than oneregistration, whether in one State or Union territory or more than one Stateor Union territory shall, in respect of each such registration, be treated asdistinct persons for the purposes of this Act.

(5) Where a person who has obtained or is required to obtain registrationin a State or Union territory in respect of an establishment, has anestablishment in another State or Union territory, then such establishmentsshall be treated as establishments of distinct persons for the purposes of thisAct.

(6) Every person shall have a Permanent Account Number issued underthe Income-tax Act, 1961 in order to be eligible for grant of registration :

Provided that a person required to deduct tax under section 51 mayhave, in lieu of a Permanent Account Number, a Tax Deduction and CollectionAccount Number issued under the said Act in order to be eligible for grant ofregistration.

(7) Notwithstanding anything contained in sub-section (6), a non-resident taxable person may be granted registration under sub-section (1) onthe basis of such other documents as may be prescribed.

(8) Where a person who is liable to be registered under this Act fails toobtain registration, the proper officer may, without prejudice to any actionwhich may be taken under this Act or under any other law for the time beingin force, proceed to register such person in such manner as may be prescribed.

(9) Notwithstanding anything contained in sub-section (1),––(a) any specialised agency of the United Nations Organisation or

any Multilateral Financial Institution and Organisation notified underthe United Nations (Privileges and Immunities) Act, 1947, Consulate orEmbassy of foreign countries ; and

Procedurefo r

registration.

43 of1961.

46 of1947.


(b) any other person or class of persons, as may be notified by theCommissioner,

shall be granted a Unique Identity Number in such manner and for suchpurposes, including refund of taxes on the notified supplies of goods orservices or both received by them, as may be prescribed.

(10) The registration or the Unique Identity Number shall be grantedor rejected after due verification in such manner and within such period asmay be prescribed.

(11) A certificate of registration shall be issued in such form and witheffect from such date as may be prescribed.

(12) A registration or a Unique Identity Number shall be deemed tohave been granted after the expiry of the period prescribed under sub-section(10), if no deficiency has been communicated to the applicant within thatperiod.

26. (1) The grant of registration or the Unique Identity Number underthe Central Goods and Services Tax Act shall be deemed to be a grant ofregistration or the Unique Identity Number under this Act subject to thecondition that the application for registration or the Unique Identity Numberhas not been rejected under this Act within the time specified in sub-section(10) of section 25.

(2) Notwithstanding anything contained in sub-section (10) of section25, any rejection of application for registration or the Unique Identity Numberunder the Central Goods and Services Tax Act shall be deemed to be a rejectionof application for registration under this Act.

27. (1) The certificate of registration issued to a casual taxable personor a non-resident taxable person shall be valid for the period specified in theapplication for registration or ninety days from the effective date ofregistration, whichever is earlier and such person shall make taxable suppliesonly after the issuance of the certificate of registration :

Provided that the proper officer may, on sufficient cause being shown bythe said taxable person, extend the said period of ninety days by a furtherperiod not exceeding ninety days.

(2) A casual taxable person or a non-resident taxable person shall, atthe time of submission of application for registration under sub-section (1) ofsection 25, make an advance deposit of tax in an amount equivalent to theestimated tax liability of such person for the period for which the registrationis sought :

Provided that where any extension of time is sought under sub-section(1), such taxable person shall deposit an additional amount of tax equivalentto the estimated tax liability of such person for the period for which theextension is sought.

(3) The amount deposited under sub-section (2) shall be credited to theelectronic cash ledger of such person and shall be utilised in the mannerprovided under section 49.

28. (1) Every registered person and a person to whom a Unique IdentityNumber has been assigned shall inform the proper officer of any changes inthe information furnished at the time of registration or subsequent thereto,in such form and manner and within such period as may be prescribed.

D ee m edregistration.

Specialprovisionsrelating tocasualtaxableperson andnon-residenttaxableperson.

Amendmento fregistration.


(2) The proper officer may, on the basis of information furnished undersub-section (1) or as ascertained by him, approve or reject amendments inthe registration particulars in such manner and within such period as maybe prescribed :

Provided that approval of the proper officer shall not be required inrespect of amendment of such particulars as may be prescribed :

Provided further that the proper officer shall not reject the applicationfor amendment in the registration particulars without giving the person anopportunity of being heard.

(3) Any rejection or approval of amendments under the Central Goodsand Services Tax Act shall be deemed to be a rejection or approval under thisAct.

29. (1) The proper officer may, either on his own motion or on anapplication filed by the registered person or by his legal heirs, in case ofdeath of such person, cancel the registration, in such manner and withinsuch period as may be prescribed, having regard to the circumstances where,—

(a) the business has been discontinued, transferred fully for anyreason including death of the proprietor, amalgamated with other legalentity, demerged or otherwise disposed of ; or

(b) there is any change in the constitution of the business ; or(c) the taxable person, other than the person registered under sub-

section (3) of section 25, is no longer liable to be registered under section22 or section 24.(2) The proper officer may cancel the registration of a person from such

date, including any retrospective date, as he may deem fit, where,––(a) a registered person has contravened such provisions of the Act

or the rules made thereunder as may be prescribed ; or(b) a person paying tax under section 10 has not furnished returns

for three consecutive tax periods ; or(c) any registered person, other than a person specified in clause

(b), has not furnished returns for a continuous period of six months ; or(d) any person who has taken voluntary registration under sub-

section (3) of section 25 has not commenced business within six monthsfrom the date of registration ; or

(e) registration has been obtained by means of fraud, wilfulmisstatement or suppression of facts :

Provided that the proper officer shall not cancel the registrationwithout giving the person an opportunity of being heard.(3) The cancellation of registration under this section shall not affect

the liability of the person to pay tax and other dues under this Act or todischarge any obligation under this Act or the rules made thereunder forany period prior to the date of cancellation whether or not such tax andother dues are determined before or after the date of cancellation.

(4) The cancellation of registration under the Central Goods and ServicesTax Act shall be deemed to be a cancellation of registration under this Act.

(5) Every registered person whose registration is cancelled shall payan amount, by way of debit in the electronic credit ledger or electronic cashledger, equivalent to the credit of input tax in respect of inputs held in stockand inputs contained in semi-finished or finished goods held in stock or capital

Cancellationo f

registration.


goods or plant and machinery on the day immediately preceding the date ofsuch cancellation or the output tax payable on such goods, whichever is higher,calculated in such manner as may be prescribed :

Provided that in case of capital goods or plant and machinery, the taxableperson shall pay an amount equal to the input tax credit taken on the saidcapital goods or plant and machinery, reduced by such percentage points asmay be prescribed or the tax on the transaction value of such capital goods orplant and machinery under section 15, whichever is higher.

(6) The amount payable under sub-section (5) shall be calculated in suchmanner as may be prescribed.

30. (1) Subject to such conditions as may be prescribed, any registeredperson, whose registration is cancelled by the proper officer on his ownmotion, may apply to such officer for revocation of cancellation of theregistration in the prescribed manner within thirty days from the date ofservice of the cancellation order.

(2) The proper officer may, in such manner and within such period asmay be prescribed, by order, either revoke cancellation of the registration orreject the application :

Provided that the application for revocation of cancellation of registrationshall not be rejected unless the applicant has been given an opportunity ofbeing heard.

(3) The revocation of cancellation of registration under the CentralGoods and Services Tax Act shall be deemed to be a revocation of cancellationof registration under this Act.

CHAPTER VIITAX INVOICE, CREDIT AND DEBIT NOTES

31. (1) A registered person supplying taxable goods shall, before or atthe time of,––

(a) removal of goods for supply to the recipient, where the supplyinvolves movement of goods ; or

(b) delivery of goods or making available thereof to the recipient, inany other case,

issue a tax invoice showing the description, quantity and value of goods, thetax charged thereon and such other particulars as may be prescribed :

Provided that the Government may, on the recommendations of theCouncil, by notification, specify the categories of goods or supplies in respectof which a tax invoice shall be issued, within such time and in such manneras may be prescribed.

(2) A registered person supplying taxable services shall, before or afterthe provision of service but within a prescribed period, issue a tax invoice,showing the description, value, tax charged thereon and such other particularsas may be prescribed :

Provided that the Government may, on the recommendations of theCouncil, by notification and subject to such conditions as may be mentionedtherein, specify the categories of services in respect of which––

(a) any other document issued in relation to the supply shall bedeemed to be a tax invoice ; or

(b) tax invoice may not be issued.

Revocationo fcancellationo fregistration.

Taxinvoice.


(3) Notwithstanding anything contained in sub-sections (1) and (2)––(a) a registered person may, within one month from the date of

issuance of certificate of registration and in such manner as may beprescribed, issue a revised invoice against the invoice already issuedduring the period beginning with the effective date of registration tillthe date of issuance of certificate of registration to him ;

(b) a registered person may not issue a tax invoice if the value of thegoods or services or both supplied is less than two hundred rupeessubject to such conditions and in such manner as may be prescribed ;

(c) a registered person supplying exempted goods or services orboth or paying tax under the provisions of section 10 shall issue, insteadof a tax invoice, a bill of supply containing such particulars and in suchmanner as may be prescribed :

Provided that the registered person may not issue a bill of supply ifthe value of the goods or services or both supplied is less than twohundred rupees subject to such conditions and in such manner as maybe prescribed ;

(d) a registered person shall, on receipt of advance payment withrespect to any supply of goods or services or both, issue a receipt voucheror any other document, containing such particulars as may be prescribed,evidencing receipt of such payment ;

(e) where, on receipt of advance payment with respect to any supplyof goods or services or both the registered person issues a receiptvoucher, but subsequently no supply is made and no tax invoice is issuedin pursuance thereof, the said registered person may issue to the personwho had made the payment, a refund voucher against such payment ;

(f) a registered person who is liable to pay tax under sub-section (3)or sub-section (4) of section 9 shall issue an invoice in respect of goods orservices or both received by him from the supplier who is not registeredon the date of receipt of goods or services or both ;

(g) a registered person who is liable to pay tax under sub-section (3)or sub-section (4) of section 9 shall issue a payment voucher at the timeof making payment to the supplier.(4) In case of continuous supply of goods, where successive statements

of accounts or successive payments are involved, the invoice shall be issuedbefore or at the time each such statement is issued or, as the case may be,each such payment is received.

(5) Subject to the provisions of clause (d) of sub-section (3), in case ofcontinuous supply of services,––

(a) where the due date of payment is ascertainable from the contract,the invoice shall be issued on or before the due date of payment ;

(b) where the due date of payment is not ascertainable from thecontract, the invoice shall be issued before or at the time when thesupplier of service receives the payment ;

(c) where the payment is linked to the completion of an event, theinvoice shall be issued on or before the date of completion of that event.(6) In a case where the supply of services ceases under a contract before

the completion of the supply, the invoice shall be issued at the time when thesupply ceases and such invoice shall be issued to the extent of the supplymade before such cessation.


(7) Notwithstanding anything contained in sub-section (1), where thegoods being sent or taken on approval for sale or return are removed beforethe supply takes place, the invoice shall be issued before or at the time ofsupply or six months from the date of removal, whichever is earlier.

Explanation.––For the purposes of this section, the expression “taxinvoice” shall include any revised invoice issued by the supplier in respect ofa supply made earlier.

32. (1) A person who is not a registered person shall not collect inrespect of any supply of goods or services or both any amount by way of taxunder this Act.

(2) No registered person shall collect tax except in accordance with theprovisions of this Act or the rules made thereunder.

33. Notwithstanding anything contained in this Act or any other lawfor the time being in force, where any supply is made for a consideration,every person who is liable to pay tax for such supply shall prominently indicatein all documents relating to assessment, tax invoice and other like documents,the amount of tax which shall form part of the price at which such supply ismade.

34. (1) Where a tax invoice has been issued for supply of any goods orservices or both and the taxable value or tax charged in that tax invoice isfound to exceed the taxable value or tax payable in respect of such supply, orwhere the goods supplied are returned by the recipient, or where goods orservices or both supplied are found to be deficient, the registered person,who has supplied such goods or services or both, may issue to the recipient acredit note containing such particulars as may be prescribed.

(2) Any registered person who issues a credit note in relation to a supplyof goods or services or both shall declare the details of such credit note in thereturn for the month during which such credit note has been issued but notlater than September following the end of the financial year in which suchsupply was made, or the date of furnishing of the relevant annual return,whichever is earlier, and the tax liability shall be adjusted in such manner asmay be prescribed :

Provided that, no reduction in output tax liability of the supplier shallbe permitted, if the incidence of tax and interest on such supply has beenpassed on to any other person.

(3) Where a tax invoice has been issued for supply of any goods or servicesor both and the taxable value or tax charged in that tax invoice is found to beless than the taxable value or tax payable in respect of such supply, theregistered person, who has supplied such goods or services or both, shallissue to the recipient a debit note containing such particulars as may beprescribed.

(4) Any registered person who issues a debit note in relation to a supplyof goods or services or both shall declare the details of such debit note in thereturn for the month during which such debit note has been issued and thetax liability shall be adjusted in such manner as may be prescribed.

Explanation.––For the purposes of this Act, the expression “debit note”shall include a supplementary invoice.

Prohibitionof un-authorisedcollectionof tax.

Amount oftax to beindicatedin taxinvoice andotherdocuments.

Credit anddebitnotes.

¦ÉÉMÉ +É`ö--94-5


CHAPTER VIIIACCOUNTS AND RECORDS

35. (1) Every registered person shall keep and maintain, at his principalplace of business, as mentioned in the certificate of registration, a true andcorrect account of—

(a) production or manufacture of goods ;(b) inward and outward supply of goods or services or both ;(c) stock of goods ;(d) input tax credit availed ;(e) output tax payable and paid ; and(f) such other particulars as may be prescribed :Provided that where more than one place of business is specified in

the certificate of registration, the accounts relating to each place ofbusiness shall be kept at such places of business :

Provided further that the registered person may keep and maintainsuch accounts and other particulars in electronic form in such manneras may be prescribed.(2) Every owner or operator of warehouse or godown or any other place

used for storage of goods and every transporter, irrespective of whether heis a registered person or not, shall maintain records of the consigner,consignee and other relevant details of the goods in such manner as may beprescribed.

(3) The Commissioner may notify a class of taxable persons to maintainadditional accounts or documents for such purpose as may be specifiedtherein.

(4) Where the Commissioner considers that any class of taxable personsis not in a position to keep and maintain accounts in accordance with theprovisions of this section, he may, for reasons to be recorded in writing, permitsuch class of taxable persons to maintain accounts in such manner as may beprescribed.

(5) Every registered person whose turnover during a financial yearexceeds the prescribed limit shall get his accounts audited by a charteredaccountant or a cost accountant and shall submit a copy of the audited annualaccounts, the reconciliation statement under sub-section (2) of section 44and such other documents in such form and manner as may be prescribed.

(6) Subject to the provisions of clause (h) of sub-section (5) of section 17,where the registered person fails to account for the goods or services or bothin accordance with the provisions of sub-section (1), the proper officer shalldetermine the amount of tax payable on the goods or services or both thatare not accounted for, as if such goods or services or both had been suppliedby such person and the provisions of section 73 or section74, as the casemaybe, shall, mutatis mutandis, apply for determination of such tax.

36. Every registered person required to keep and maintain books ofaccount or other records in accordance with the provisions of sub-section (1)of section 35 shall retain them until the expiry of seventy two months fromthe due date of furnishing of annual return for the year pertaining to suchaccounts and records :

Provided that a registered person, who is a party to an appeal or revisionor any other proceedings before any Appellate Authority or Revisional

Accountsand other

records.

Period ofretention

o faccounts.


Authority or Appellate Tribunal or court, whether filed by him or by theCommissioner, or is under investigation for an offence under Chapter XIX,shall retain the books of account and other records pertaining to the subjectmatter of such appeal or revision or proceedings or investigation for a periodof one year after final disposal of such appeal or revision or proceedings orinvestigation, or for the period specified above, whichever is later.

CHAPTER- IXRETURNS

37. (1) Every registered person, other than an Input ServiceDistributor, a non-resident taxable person and a person paying tax underthe provisions of section 10 or section 51 or section 52, shall furnish,electronically, in such form and manner as may be prescribed, the details ofoutward supplies of goods or services or both effected during a tax period onor before the tenth day of the month succeeding the said tax period and suchdetails shall be communicated to the recipient of the said supplies withinsuch time and in such manner as may be prescribed :

Provided that the registered person shall not be allowed to furnish thedetails of outward supplies during the period from the eleventh day to thefifteenth day of the month succeeding the tax period :

Provided further that the Commissioner may, for reasons to be recordedin writing, by notification, extend the time limit for furnishing such detailsfor such class of taxable persons as may be specified therein :

Provided also that any extension of time limit notified by theCommissioner of central tax shall be deemed to be notified by theCommissioner.

(2) Every registered person who has been communicated the detailsunder sub-section (3) of section 38 or the details pertaining to inward suppliesof Input Service Distributor under sub-section (4) of section 38, shall eitheraccept or reject the details so communicated, on or before the seventeenthday, but not before the fifteenth day, of the month succeeding the tax periodand the details furnished by him under sub-section (1) shall stand amendedaccordingly.

(3) Any registered person, who has furnished the details under sub-section (1) for any tax period and which have remained unmatched undersection 42 or section 43, shall, upon discovery of any error or omission therein,rectify such error or omission in such manner as may be prescribed, andshall pay the tax and interest, if any, in case there is a short payment of taxon account of such error or omission, in the return to be furnished for suchtax period :

Provided that no rectification of error or omission in respect of the detailsfurnished under sub-section (1) shall be allowed after furnishing of the returnunder section 39 for the month of September following the end of the financialyear to which such details pertain, or furnishing of the relevant annual return,whichever is earlier.

Explanation.––For the purposes of this Chapter, the expression “detailsof outward supplies” shall include details of invoices, debit notes, credit notesand revised invoices issued in relation to outward supplies made during anytax period.

Furnishingdetails ofoutwardsupplies.

¦ÉÉMÉ +É`ö--94-5+


38. (1) Every registered person, other than an Input Service Distributoror a non-resident taxable person or a person paying tax under the provisionsof section 10 or section 51 or section 52, shall verify, validate, modify or delete,if required, the details relating to outward supplies and credit or debit notescommunicated under sub-section (1) of section 37 to prepare the details ofhis inward supplies and credit or debit notes and may include therein, thedetails of inward supplies and credit or debit notes received by him in respectof such supplies that have not been declared by the supplier under sub-section(1) of section 37.

(2) Every registered person, other than an Input Service Distributor ora non-resident taxable person or a person paying tax under the provisions ofsection 10 or section 51 or section 52, shall furnish, electronically, the detailsof inward supplies of taxable goods or services or both, including inwardsupplies of goods or services or both on which the tax is payable on reversecharge basis under this Act and inward supplies of goods or services or bothtaxable under the Integrated Goods and Services Tax Act or on whichintegrated goods and services tax is payable under section 3 of the CustomsTariff Act, 1975, and credit or debit notes received in respect of such suppliesduring a tax period after the tenth day but on or before the fifteenth day ofthe month succeeding the tax period in such form and manner as may beprescribed :

Provided that the Commissioner may, for reasons to be recorded inwriting, by notification, extend the time limit for furnishing such details forsuch class of taxable persons as may be specified therein :

Provided further that any extension of time limit notified by theCommissioner of central tax shall be deemed to be notified by theCommissioner.

(3) The details of supplies modified, deleted or included by the recipientand furnished under sub-section (2) shall be communicated to the supplierconcerned in such manner and within such time as may be prescribed.

(4) The details of supplies modified, deleted or included by the recipientin the return furnished under sub-section (2) or sub-section (4) of section 39shall be communicated to the supplier concerned in such manner and withinsuch time as may be prescribed.

(5) Any registered person, who has furnished the details under sub-section (2) for any tax period and which have remained unmatched undersection 42 or section 43, shall, upon discovery of any error or omission therein,rectify such error or omission in the tax period during which such error oromission is noticed in such manner as may be prescribed, and shall pay thetax and interest, if any, in case there is a short payment of tax on account ofsuch error or omission, in the return to be furnished for such tax period :

Provided that no rectification of error or omission in respect of the detailsfurnished under sub-section (2) shall be allowed after furnishing of the returnunder section 39 for the month of September following the end of the financialyear to which such details pertain, or furnishing of the relevant annual return,whichever is earlier.

39. (1) Every registered person, other than an Input Service Distributoror a non-resident taxable person or a person paying tax under the provisionsof section 10 or section 51 or section 52 shall, for every calendar month orpart thereof, furnish, in such form and manner as may be prescribed, a return,electronically, of inward and outward supplies of goods or services or both,

Furnishingdetails of

inwardsupplies.

51 of1975.

Furnishingof returns.


input tax credit availed, tax payable, tax paid and such other particulars asmay be prescribed on or before the twentieth day of the month succeedingsuch calendar month or part thereof.

(2) A registered person paying tax under the provisions of section 10shall, for each quarter or part thereof, furnish, in such form and manner asmay be prescribed, a return, electronically, of turnover in the State, inwardsupplies of goods or services or both, tax payable and tax paid within eighteendays after the end of such quarter.

(3) Every registered person required to deduct tax at source under theprovisions of section 51 shall furnish, in such form and manner as may beprescribed, a return, electronically, for the month in which such deductionshave been made within ten days after the end of such month.

(4) Every taxable person registered as an Input Service Distributor shall,for every calendar month or part thereof, furnish, in such form and manneras may be prescribed, a return, electronically, within thirteen days after theend of such month.

(5) Every registered non-resident taxable person shall, for everycalendar month or part thereof, furnish, in such form and manner as may beprescribed, a return, electronically, within twenty days after the end of acalendar month or within seven days after the last day of the period ofregistration specified under sub-section (1) of section 27, whichever is earlier.

(6) The Commissioner may, for reasons to be recorded in writing, bynotification, extend the time limit for furnishing the returns under this sectionfor such class of registered persons as may be specified therein :

Provided that any extension of time limit notified by the Commissionerof central tax shall be deemed to be notified by the Commissioner.

(7) Every registered person, who is required to furnish a return undersub-section (1) or sub-section (2) or sub-section (3) or sub-section (5), shallpay to the Government the tax due as per such return not later than the lastdate on which he is required to furnish such return.

(8) Every registered person who is required to furnish a return undersub-section (1) or sub-section (2) shall furnish a return for every tax periodwhether or not any supplies of goods or services or both have been madeduring such tax period.

(9) Subject to the provisions of sections 37 and 38, if any registered personafter furnishing a return under sub-section (1) or sub-section (2) or sub-section(3) or sub-section (4) or sub-section (5) discovers any omission or incorrectparticulars therein, other than as a result of scrutiny, audit, inspection orenforcement activity by the tax authorities, he shall rectify such omission orincorrect particulars in the return to be furnished for the month or quarterduring which such omission or incorrect particulars are noticed, subject topayment of interest under this Act :

Provided that no such rectification of any omission or incorrectparticulars shall be allowed after the due date for furnishing of return forthe month of September or second quarter following the end of the financialyear, or the actual date of furnishing of relevant annual return, whichever isearlier.

(10) A registered person shall not be allowed to furnish a return for atax period if the return for any of the previous tax periods has not beenfurnished by him.


40. Every registered person who has made outward supplies in theperiod between the date on which he became liable to registration till thedate on which registration has been granted shall declare the same in thefirst return furnished by him after grant of registration.

41. (1) Every registered person shall, subject to such conditions andrestrictions as may be prescribed, be entitled to take the credit of eligibleinput tax, as self-assessed, in his return and such amount shall be creditedon a provisional basis to his electronic credit ledger.

(2) The credit referred to in sub-section (1) shall be utilised only forpayment of self-assessed output tax as per the return referred to in the saidsub-section.

42. (1) The details of every inward supply furnished by a registeredperson (hereafter in this section referred to as the “recipient”) for a tax periodshall, in such manner and within such time as may be prescribed, bematched—

(a) with the corresponding details of outward supply furnished bythe corresponding registered person (hereafter in this section referredto as the “supplier”) in his valid return for the same tax period or anypreceding tax period ;

(b) with the integrated goods and services tax paid under section 3of the Customs Tariff Act, 1975 in respect of goods imported by him ;and

(c) for duplication of claims of input tax credit.(2) The claim of input tax credit in respect of invoices or debit notes

relating to inward supply that match with the details of correspondingoutward supply or with the integrated goods and services tax paid undersection 3 of the Customs Tariff Act, 1975 in respect of goods imported by himshall be finally accepted and such acceptance shall be communicated, in suchmanner as may be prescribed, to the recipient.

(3) Where the input tax credit claimed by a recipient in respect of aninward supply is in excess of the tax declared by the supplier for the samesupply or the outward supply is not declared by the supplier in his validreturns, the discrepancy shall be communicated to both such persons in suchmanner as may be prescribed.

(4) The duplication of claims of input tax credit shall be communicatedto the recipient in such manner as may be prescribed.

(5) The amount in respect of which any discrepancy is communicatedunder sub-section (3) and which is not rectified by the supplier in his validreturn for the month in which discrepancy is communicated shall be addedto the output tax liability of the recipient, in such manner as may beprescribed, in his return for the month succeeding the month in which thediscrepancy is communicated.

(6) The amount claimed as input tax credit that is found to be in excesson account of duplication of claims shall be added to the output tax liabilityof the recipient in his return for the month in which the duplication iscommunicated.

(7) The recipient shall be eligible to reduce, from his output tax liability,the amount added under sub-section (5), if the supplier declares the detailsof the invoice or debit note in his valid return within the time specified insub-section (9) of section 39.

FirstReturn.

Claim ofinput tax

credit andprovisionalacceptance

thereof.

Matching,reversal

andreclaim ofinput tax

credit.

51 of1975.

51 of1975.


(8) A recipient in whose output tax liability any amount has been addedunder sub-section (5) or sub-section (6), shall be liable to pay interest at therate specified under sub-section (1) of section 50 on the amount so addedfrom the date of availing of credit till the corresponding additions are madeunder the said sub-sections.

(9) Where any reduction in output tax liability is accepted under sub-section (7), the interest paid under sub-section (8) shall be refunded to therecipient by crediting the amount in the corresponding head of his electroniccash ledger in such manner as may be prescribed :

Provided that the amount of interest to be credited in any case shall notexceed the amount of interest paid by the supplier.

(10) The amount reduced from the output tax liability in contraventionof the provisions of sub-section (7) shall be added to the output tax liability ofthe recipient in his return for the month in which such contravention takesplace and such recipient shall be liable to pay interest on the amount soadded at the rate specified in sub-section (3) of section 50.

43. (1) The details of every credit note relating to outward supplyfurnished by a registered person (hereafter in this section referred to as the“supplier”) for a tax period shall, in such manner and within such time asmay be prescribed, be matched––

(a) with the corresponding reduction in the claim for input tax creditby the corresponding registered person (hereafter in this section referredto as the “recipient”) in his valid return for the same tax period or anysubsequent tax period ; and

(b) for duplication of claims for reduction in output tax liability.(2) The claim for reduction in output tax liability by the supplier that

matches with the corresponding reduction in the claim for input tax creditby the recipient shall be finally accepted and communicated, in such manneras may be prescribed, to the supplier.

(3) Where the reduction of output tax liability in respect of outwardsupplies exceeds the corresponding reduction in the claim for input tax creditor the corresponding credit note is not declared by the recipient in his validreturns, the discrepancy shall be communicated to both such persons in suchmanner as may be prescribed.

(4) The duplication of claims for reduction in output tax liability shallbe communicated to the supplier in such manner as may be prescribed.

(5) The amount in respect of which any discrepancy is communicatedunder sub-section (3) and which is not rectified by the recipient in his validreturn for the month in which discrepancy is communicated shall be addedto the output tax liability of the supplier, in such manner as may beprescribed, in his return for the month succeeding the month in which thediscrepancy is communicated.

(6) The amount in respect of any reduction in output tax liability that isfound to be on account of duplication of claims shall be added to the outputtax liability of the supplier in his return for the month in which suchduplication is communicated.

(7) The supplier shall be eligible to reduce, from his output tax liability,the amount added under sub-section (5) if the recipient declares the detailsof the credit note in his valid return within the time specified in sub-section(9) of section 39.

Matching,reversalandreclaim ofreductionin outputtaxliability.


(8) A supplier in whose output tax liability any amount has been addedunder sub-section (5) or sub-section (6), shall be liable to pay interest at therate specified under sub-section (1) of section 50 in respect of the amount soadded from the date of such claim for reduction in the output tax liability tillthe corresponding additions are made under the said sub-sections.

(9) Where any reduction in output tax liability is accepted under sub-section (7), the interest paid under sub-section (8) shall be refunded to thesupplier by crediting the amount in the corresponding head of his electroniccash ledger in such manner as may be prescribed :

Provided that the amount of interest to be credited in any case shall notexceed the amount of interest paid by the recipient.

(10) The amount reduced from output tax liability in contravention ofthe provisions of sub-section (7) shall be added to the output tax liability ofthe supplier in his return for the month in which such contravention takesplace and such supplier shall be liable to pay interest on the amount so addedat the rate specified in sub-section (3) of section 50.

44. (1) Every registered person, other than an Input ServiceDistributor, a person paying tax under section 51 or section 52, a casual taxableperson and a non-resident taxable person, shall furnish an annual return forevery financial year electronically in such form and manner as may beprescribed on or before the thirty-first day of December following the end ofsuch financial year.

(2) Every registered person who is required to get his accounts auditedin accordance with the provisions of sub-section (5) of section 35 shall furnish,electronically, the annual return under sub-section (1) along with a copy ofthe audited annual accounts and a reconciliation statement, reconciling thevalue of supplies declared in the return furnished for the financial year withthe audited annual financial statement, and such other particulars as may beprescribed.

45. Every registered person who is required to furnish a return undersub-section (1) of section 39 and whose registration has been cancelled shallfurnish a final return within three months of the date of cancellation or dateof order of cancellation, whichever is later, in such form and manner as maybe prescribed.

46. Where a registered person fails to furnish a return under section39 or section 44 or section 45, a notice shall be issued requiring him to furnishsuch return within fifteen days in such form and manner as may be prescribed.

47. (1) Any registered person who fails to furnish the details of outwardor inward supplies required under section 37 or section 38 or returns requiredunder section 39 or section 45 by the due date shall pay a late fee of onehundred rupees for every day during which such failure continues subject toa maximum amount of five thousand rupees.

(2) Any registered person who fails to furnish the return required undersection 44 by the due date shall be liable to pay a late fee of one hundredrupees for every day during which such failure continues subject to amaximum of an amount calculated at a quarter per cent. of his turnover inthe State.

Annualreturn.

Finalreturn.

Notice toreturn

defaulters.

Levy oflate fee.


48. (1) The manner of approval of goods and services tax practitioners,their eligibility conditions, duties and obligations, manner of removal andother conditions relevant for their functioning shall be such as may beprescribed.

(2) A registered person may authorise an approved goods and servicestax practitioner to furnish the details of outward supplies under section 37,the details of inward supplies under section 38 and the return under section39 or section 44 or section 45 in such manner as may be prescribed.

(3) Notwithstanding anything contained in sub-section (2), theresponsibility for correctness of any particulars furnished in the return orother details filed by the goods and services tax practitioners shall continueto rest with the registered person on whose behalf such return and detailsare furnished.

CHAPTER-XPAYMENT OF TAX

49. (1) Every deposit made towards tax, interest, penalty, fee or anyother amount by a person by internet banking or by using credit or debitcards or National Electronic Fund Transfer or Real Time Gross Settlementor by such other mode and subject to such conditions and restrictions as maybe prescribed, shall be credited to the electronic cash ledger of such personto be maintained in such manner as may be prescribed.

(2) The input tax credit as self-assessed in the return of a registeredperson shall be credited to his electronic credit ledger, in accordance withsection 41, to be maintained in such manner as may be prescribed.

(3) The amount available in the electronic cash ledger may be used formaking any payment towards tax, interest, penalty, fees or any other amountpayable under the provisions of this Act or the rules made thereunder insuch manner and subject to such conditions and within such time as may beprescribed.

(4) The amount available in the electronic credit ledger may be used formaking any payment towards output tax under this Act or under theIntegrated Goods and Services Tax Act in such manner and subject to suchconditions and within such time as may be prescribed.

(5) The amount of input tax credit available in the electronic credit ledgerof the registered person on account of ––

(a) integrated tax shall first be utilised towards payment ofintegrated tax and the amount remaining, if any, may be utilised towardsthe payment of central tax and State tax, or as the case may be, Unionterritory tax, in that order ;

(b) the central tax shall first be utilised towards payment of centraltax and the amount remaining, if any, may be utilised towards thepayment of integrated tax ;

(c) the State tax shall first be utilised towards payment of State taxand the amount remaining, if any, may be utilised towards the paymentof integrated tax ;

(d) the Union territory tax shall first be utilised towards paymentof Union territory tax and the amount remaining, if any, may be utilisedtowards the payment of integrated tax ;

(e) the central tax shall not be utilised towards payment of Statetax or Union territory tax ; and

Goods andservicestax practi-tioners.

Payment oftax,interest,penaltyand otheramounts.

¦ÉÉMÉ +É`ö--94-6


(f) the State tax or Union territory tax shall not be utilised towardspayment of central tax.(6) The balance in the electronic cash ledger or electronic credit ledger

after payment of tax, interest, penalty, fee or any other amount payable underthis Act or the rules made thereunder may be refunded in accordance withthe provisions of section 54.

(7) All liabilities of a taxable person under this Act shall be recordedand maintained in an electronic liability register in such manner as may beprescribed.

(8) Every taxable person shall discharge his tax and other dues underthis Act or the rules made thereunder in the following order, namely :––

(a) self-assessed tax, and other dues related to returns of previoustax periods ;

(b) self-assessed tax, and other dues related to the return of thecurrent tax period ;

(c) any other amount payable under this Act or the rules madethereunder including the demand determined under section 73 orsection 74.(9) Every person who has paid the tax on goods or services or both under

this Act shall, unless the contrary is proved by him, be deemed to have passedon the full incidence of such tax to the recipient of such goods or services orboth.

Explanation.––For the purposes of this section,(a) the date of credit to the account of the Government in the

authorised bank shall be deemed to be the date of deposit in theelectronic cash ledger ;

(b) the expression,—(i) “tax dues” means the tax payable under this Act and does

not include interest, fee and penalty ; and(ii) “other dues” means interest, penalty, fee or any other amount

payable under this Act or the rules made thereunder.

50. (1) Every person who is liable to pay tax in accordance with theprovisions of this Act or the rules made thereunder, but fails to pay the taxor any part thereof to the Government within the period prescribed, shallfor the period for which the tax or any part thereof remains unpaid, pay, onhis own, interest at such rate, not exceeding eighteen per cent., as may benotified by the Government on the recommendations of the Council.

(2) The interest under sub-section (1) shall be calculated, in such manneras may be prescribed, from the day succeeding the day on which such tax wasdue to be paid.

(3) A taxable person who makes an undue or excess claim of input taxcredit under sub-section (10) of section 42 or undue or excess reduction inoutput tax liability under sub-section (10) of section 43, shall pay interest onsuch undue or excess claim or on such undue or excess reduction, as the casemay be, at such rate not exceeding twenty-four per cent., as may be notifiedby the Government on the recommendations of the Council.

Interest ondelayed

payment oftax.


51. (1) Notwithstanding anything to the contrary contained in this Act,the Government may mandate,—

(a) a department or establishment of the Central Government orState Government ; or

(b) local authority ; or(c) Governmental agencies ; or(d) such persons or category of persons as may be notified by the

Government on the recommendations of the Council,(hereafter in this section referred to as “the deductor”), to deduct tax at therate of one per cent. from the payment made or credited to the supplier(hereafter in this section referred to as “the deductee”) of taxable goods orservices or both, where the total value of such supply, under a contract,exceeds two lakh and fifty thousand rupees :

Provided that no deduction shall be made if the location of the supplierand the place of supply is in a State or Union territory which is differentfrom the State or, as the case may be, Union territory of registration of therecipient.

Explanation.––For the purpose of deduction of tax specified above, thevalue of supply shall be taken as the amount excluding the central tax, Statetax, integrated tax and cess indicated in the invoice.

(2) The amount deducted as tax under this section shall be paid to theGovernment by the deductor within ten days after the end of the month inwhich such deduction is made, in such manner as may be prescribed.

(3) The deductor shall furnish to the deductee a certificate mentioningtherein the contract value, rate of deduction, amount deducted, amount paidto the Government and such other particulars in such manner as may beprescribed.

(4) If any deductor fails to furnish to the deductee the certificate, afterdeducting the tax at source, within five days of crediting the amount sodeducted to the Government, the deductor shall pay, by way of a late fee, asum of one hundred rupees per day from the day after the expiry of such fiveday period until the failure is rectified, subject to a maximum amount of fivethousand rupees.

(5) The deductee shall claim credit, in his electronic cash ledger, of thetax deducted and reflected in the return of the deductor furnished undersub-section (3) of section 39, in such manner as may be prescribed.

(6) If any deductor fails to pay to the Government the amount deductedas tax under sub-section (1), he shall pay interest in accordance with theprovisions of sub-section (1) of section 50, in addition to the amount of taxdeducted.

(7) The determination of the amount in default under this section shallbe made in the manner specified in section 73 or section 74.

(8) The refund to the deductor or the deductee arising on account ofexcess or erroneous deduction shall be dealt with in accordance with theprovisions of section 54 :

Provided that no refund to the deductor shall be granted, if the amountdeducted has been credited to the electronic cash ledger of the deductee.

Taxdeductionat source.

¦ÉÉMÉ +É`ö--94-6+


52. (1) Notwithstanding anything to the contrary contained in this Act,every electronic commerce operator (hereafter in this section referred to asthe “operator”), not being an agent, shall collect an amount calculated atsuch rate not exceeding one per cent., as may be notified by the Governmenton the recommendations of the Council, of the net value of taxable suppliesmade through it by other suppliers where the consideration with respect tosuch supplies is to be collected by the operator.

Explanation.––For the purposes of this sub-section, the expression “netvalue of taxable supplies” shall mean the aggregate value of taxable suppliesof goods or services or both, other than services notified under sub-section(5) of section 9, made during any month by all registered persons through theoperator reduced by the aggregate value of taxable supplies returned to thesuppliers during the said month.

(2) The power to collect the amount specified in sub-section (1) shall bewithout prejudice to any other mode of recovery from the operator.

(3) The amount collected under sub-section (1) shall be paid to theGovernment by the operator within ten days after the end of the month inwhich such collection is made, in such manner as may be prescribed.

(4) Every operator who collects the amount specified in sub-section (1)shall furnish a statement, electronically, containing the details of outwardsupplies of goods or services or both effected through it, including the suppliesof goods or services or both returned through it, and the amount collectedunder sub-section (1) during a month, in such form and manner as may beprescribed, within ten days after the end of such month.

(5) Every operator who collects the amount specified in sub-section (1)shall furnish an annual statement, electronically, containing the details ofoutward supplies of goods or services or both effected through it, includingthe supplies of goods or services or both returned through it, and the amountcollected under the said sub-section during the financial year, in such formand manner as may be prescribed, before the thirty first day of Decemberfollowing the end of such financial year.

(6) If any operator after furnishing a statement under sub-section (4)discovers any omission or incorrect particulars therein, other than as a resultof scrutiny, audit, inspection or enforcement activity by the tax authorities,he shall rectify such omission or incorrect particulars in the statement to befurnished for the month during which such omission or incorrect particularsare noticed, subject to payment of interest, as specified in sub-section (1) ofsection 50 :

Provided that no such rectification of any omission or incorrectparticulars shall be allowed after the due date for furnishing of statementfor the month of September following the end of the financial year or theactual date of furnishing of the relevant annual statement, whichever isearlier.

(7) The supplier who has supplied the goods or services or both throughthe operator shall claim credit, in his electronic cash ledger, of the amountcollected and reflected in the statement of the operator furnished under sub-section (4), in such manner as may be prescribed.

(8) The details of supplies furnished by every operator under sub-section(4) shall be matched with the corresponding details of outward suppliesfurnished by the concerned supplier registered under this Act in such mannerand within such time as may be prescribed.

Collectionof tax atsource.


(9) Where the details of outward supplies furnished by the operatorunder sub-section (4) do not match with the corresponding details furnishedby the supplier under section 37, the discrepancy shall be communicated toboth persons in such manner and within such time as may be prescribed.

(10) The amount in respect of which any discrepancy is communicatedunder sub-section (9) and which is not rectified by the supplier in his validreturn or the operator in his statement for the month in which discrepancyis communicated, shall be added to the output tax liability of the said supplier,where the value of outward supplies furnished by the operator is more thanthe value of outward supplies furnished by the supplier, in his return for themonth succeeding the month in which the discrepancy is communicated insuch manner as may be prescribed.

(11) The concerned supplier, in whose output tax liability any amounthas been added under sub-section (10), shall pay the tax payable in respect ofsuch supply along with interest, at the rate specified under sub-section (1) ofsection 50 on the amount so added from the date such tax was due till thedate of its payment.

(12) Any authority not below the rank of Deputy Commissioner mayserve a notice, either before or during the course of any proceedings underthis Act, requiring the operator to furnish such details relating to—

(a) supplies of goods or services or both effected through suchoperator during any period ; or

(b) stock of goods held by the suppliers making supplies throughsuch operator in the godowns or warehouses, by whatever name called,managed by such operator and declared as additional places of businessby such suppliers,

as may be specified in the notice.(13) Every operator on whom a notice has been served under sub-section

(12) shall furnish the required information within fifteen working days ofthe date of service of such notice.

(14) Any person who fails to furnish the information required by thenotice served under sub-section (12) shall, without prejudice to any actionthat may be taken under section 122, be liable to a penalty which may extendto twenty-five thousand rupees.

Explanation.—For the purposes of this section, the expression“concerned supplier” shall mean the supplier of goods or services or bothmaking supplies through the operator.

53. On utilisation of input tax credit availed under this Act for paymentof tax dues under the Integrated Goods and Services Tax Act in accordancewith the provisions of sub-section (5) of section 49, as reflected in the validreturn furnished under sub-section (1) of section 39, the amount collected asState tax shall stand reduced by an amount equal to such credit so utilisedand the State Government shall transfer an amount equal to the amount soreduced from the State tax account to the integrated tax account in suchmanner and within such time as may be prescribed.

Transfer ofinput taxcredit.


CHAPTER XIREFUNDS

54. (1) Any person claiming refund of any tax and interest, if any, paidon such tax or any other amount paid by him, may make an application beforethe expiry of two years from the relevant date in such form and manner asmay be prescribed :

Provided that a registered person, claiming refund of any balance in theelectronic cash ledger in accordance with the provisions of sub-section (6) ofsection 49, may claim such refund in the return furnished under section 39 insuch manner as may be prescribed.

(2) A specialized agency of the United Nations Organization or anyMultilateral Financial Institution and Organization notified under the UnitedNations (Privileges and Immunities) Act, 1947, Consulate or Embassy offoreign countries or any other person or class of persons, as notified undersection 55, entitled to a refund of tax paid by it on inward supplies of goodsor services or both, may make an application for such refund, in such formand manner as may be prescribed, before the expiry of six months from thelast day of the quarter in which such supply was received.

(3) Subject to the provisions of sub-section (10), a registered person mayclaim refund of any unutilised input tax credit at the end of any tax period :

Provided that no refund of unutilised input tax credit shall be allowedin cases other than—

(i) zero-rated supplies made without payment of tax ;(ii) where the credit has accumulated on account of rate of tax on

inputs being higher than the rate of tax on output supplies (other thannil rated or fully exempt supplies), except supplies of goods or servicesor both as may be notified by the Government on the recommendationsof the Council :

Provided further that no refund of unutilised input tax credit shallbe allowed in cases where the goods exported out of India are subjectedto export duty :

Provided also that no refund of input tax credit shall be allowed, ifthe supplier of goods or services or both claims refund of the integratedtax paid on such supplies.(4) The application shall be accompanied by—

(a) such documentary evidence as may be prescribed to establishthat a refund is due to the applicant ; and

(b) such documentary or other evidence (including the documentsreferred to in section 33) as the applicant may furnish to establish thatthe amount of tax and interest, if any, paid on such tax or any otheramount paid in relation to which such refund is claimed was collectedfrom, or paid by, him and the incidence of such tax and interest had notbeen passed on to any other person :

Provided that where the amount claimed as refund is less than twolakh rupees, it shall not be necessary for the applicant to furnish anydocumentary and other evidences but he may file a declaration, basedon the documentary or other evidences available with him, certifyingthat the incidence of such tax and interest had not been passed on to anyother person.

Refund oftax.

46 of1947.


(5) If, on receipt of any such application, the proper officer is satisfiedthat the whole or part of the amount claimed as refund is refundable, he maymake an order accordingly and the amount so determined shall be creditedto the Fund referred to in section 57.

(6) Notwithstanding anything contained in sub-section (5), the properofficer may, in the case of any claim for refund on account of zero-rated supplyof goods or services or both made by registered persons, other than suchcategory of registered persons as may be notified by the Government on therecommendations of the Council, refund on a provisional basis, ninety percent. of the total amount so claimed, excluding the amount of input tax creditprovisionally accepted, in such manner and subject to such conditions,limitations and safeguards as may be prescribed and thereafter make an orderunder sub-section (5) for final settlement of the refund claim after dueverification of documents furnished by the applicant.

(7) The proper officer shall issue the order under sub-section (5) withinsixty days from the date of receipt of application complete in all respects.

(8) Notwithstanding anything contained in sub-section (5), therefundable amount shall, instead of being credited to the Fund, be paid tothe applicant, if such amount is relatable to –

(a) refund of tax paid on zero-rated supplies of goods or services orboth or on inputs or input services used in making such zero-ratedsupplies ;

(b) refund of unutilised input tax credit under sub-section (3) ;(c) refund of tax paid on a supply which is not provided, either wholly

or partially, and for which invoice has not been issued, or where a refundvoucher has been issued ;

(d) refund of tax in pursuance of section 77 ;(e) the tax and interest, if any, or any other amount paid by the

applicant, if he had not passed on the incidence of such tax and interestto any other person ; or

(f) the tax or interest borne by such other class of applicants as theGovernment may, on the recommendations of the Council, by notification,specify.(9) Notwithstanding anything to the contrary contained in any judgment,

decree, order or direction of the Appellate Tribunal or any court or in anyother provisions of this Act or the rules made thereunder or in any other lawfor the time being in force, no refund shall be made except in accordancewith the provisions of sub-section (8).

(10) Where any refund is due under sub-section (3) to a registeredperson who has defaulted in furnishing any return or who is required to payany tax, interest or penalty, which has not been stayed by any court, Tribunalor Appellate Authority by the specified date, the proper officer may—

(a) withhold payment of refund due until the said person hasfurnished the return or paid the tax, interest or penalty, as the case maybe ;

(b) deduct from the refund due, any tax, interest, penalty, fee or anyother amount which the taxable person is liable to pay but which remainsunpaid under this Act or under the existing law.

Explanation.––For the purposes of this sub-section, the expression“specified date” shall mean the last date for filing an appeal under thisAct.


(11) Where an order giving rise to a refund is the subject matter of anappeal or further proceedings or where any other proceedings under thisAct is pending and the Commissioner is of the opinion that grant of suchrefund is likely to adversely affect the revenue in the said appeal or otherproceedings on account of malfeasance or fraud committed, he may, aftergiving the taxable person an opportunity of being heard, withhold the refundtill such time as he may determine.

(12) Where a refund is withheld under sub-section (11), the taxableperson shall, notwithstanding anything contained in section 56, be entitledto interest at such rate not exceeding six per cent. as may be notified on therecommendations of the Council, if as a result of the appeal or furtherproceedings he becomes entitled to refund.

(13) Notwithstanding anything to the contrary contained in this section,the amount of advance tax deposited by a casual taxable person or a non-resident taxable person under sub-section (2) of section 27, shall not berefunded unless such person has, in respect of the entire period for whichthe certificate of registration granted to him had remained in force, furnishedall the returns required under section 39.

(14) Notwithstanding anything contained in this section, no refundunder sub-section (5) or sub-section (6) shall be paid to an applicant, if theamount is less than one thousand rupees.

Explanation.—For the purposes of this section,––(1) “refund” includes refund of tax paid on zero-rated supplies of

goods or services or both or on inputs or input services used in makingsuch zero-rated supplies, or refund of tax on the supply of goods regardedas deemed exports, or refund of unutilised input tax credit as providedunder sub-section (3).

(2) “relevant date” means –(a) in the case of goods exported out of India where a refund of

tax paid is available in respect of goods themselves or, as the casemay be, the inputs or input services used in such goods,––

(i) if the goods are exported by sea or air, the date on whichthe ship or the aircraft in which such goods are loaded, leavesIndia ; or

(ii) if the goods are exported by land, the date on whichsuch goods pass the frontier ; or

(iii) if the goods are exported by post, the date of despatchof goods by the Post Office concerned to a place outside India ;(b) in the case of supply of goods regarded as deemed exports

where a refund of tax paid is available in respect of the goods, thedate on which the return relating to such deemed exports isfurnished ;

(c) in the case of services exported out of India where a refundof tax paid is available in respect of services themselves or, as thecase may be, the inputs or input services used in such services, thedate of––

(i) receipt of payment in convertible foreign exchange,where the supply of services had been completed prior to thereceipt of such payment ; or

(ii) issue of invoice, where payment for the services hadbeen received in advance prior to the date of issue of the invoice ;


(d) in case where the tax becomes refundable as a consequenceof judgment, decree, order or direction of the Appellate Authority,Appellate Tribunal or any court, the date of communication of suchjudgment, decree, order or direction ;

(e) in the case of refund of unutilised input tax credit undersub-section (3), the end of the financial year in which such claim forrefund arises ;

(f) in the case where tax is paid provisionally under this Act orthe rules made thereunder, the date of adjustment of tax after thefinal assessment thereof ;

(g) in the case of a person, other than the supplier, the date ofreceipt of goods or services or both by such person ; and

(h) in any other case, the date of payment of tax.

55. The Government may, on the recommendations of the Council, bynotification, specify any specialized agency of the United Nations Organizationor any Multilateral Financial Institution and Organization notified underthe United Nations (Privileges and Immunities) Act, 1947, Consulate orEmbassy of foreign countries and any other person or class of persons as maybe specified in this behalf, who shall, subject to such conditions andrestrictions as may be prescribed, be entitled to claim a refund of taxes paidon the notified supplies of goods or services or both received by them.

56. If any tax ordered to be refunded under sub-section (5) of section54 to any applicant is not refunded within sixty days from the date of receiptof application under sub-section (1) of that section, interest at such rate notexceeding six per cent. as may be specified in the notification issued by theGovernment on the recommendations of the Council shall be payable inrespect of such refund from the date immediately after the expiry of sixtydays from the date of receipt of application under the said sub-section tillthe date of refund of such tax :

Provided that where any claim of refund arises from an order passed byan adjudicating authority or Appellate Authority or Appellate Tribunal orcourt which has attained finality and the same is not refunded within sixtydays from the date of receipt of application filed consequent to such order,interest at such rate not exceeding nine per cent. as may be notified by theGovernment on the recommendations of the Council shall be payable inrespect of such refund from the date immediately after the expiry of sixtydays from the date of receipt of application till the date of refund.

Explanation.––For the purposes of this section, where any order ofrefund is made by an Appellate Authority, Appellate Tribunal or any courtagainst an order of the proper officer under sub-section (5) of section 54, theorder passed by the Appellate Authority, Appellate Tribunal or the courtshall be deemed to be an order passed under the said sub-section (5).

57. The Government shall constitute a Fund, to be called the ConsumerWelfare Fund and there shall be credited to the Fund,––

(a) the amount referred to in sub-section (5) of section 54 ;(b) any income from investment of the amount credited to the Fund ;

and(c) such other monies received by it,

in such manner as may be prescribed.

46 of1947.

Refund incertaincases.

Interest ondelayedrefunds.

ConsumerWelfareFund.

¦ÉÉMÉ +É`ö--94-7


58. (1) All sums credited to the Fund shall be utilised by the Governmentfor the welfare of the consumers in such manner as may be prescribed.

(2) The Government or the authority specified by it shall maintainproper and separate account and other relevant records in relation to theFund and prepare an annual statement of accounts in such form as may beprescribed in consultation with the Comptroller and Auditor General of India.

CHAPTER– XIIASSESSMENT

59. Every registered person shall self-assess the taxes payable underthis Act and furnish a return for each tax period as specified undersection 39.

60. (1) Subject to the provisions of sub-section (2), where the taxableperson is unable to determine the value of goods or services or both ordetermine the rate of tax applicable thereto, he may request the proper officerin writing giving reasons for payment of tax on a provisional basis and theproper officer shall pass an order, within a period not later than ninety daysfrom the date of receipt of such request, allowing payment of tax on provisionalbasis at such rate or on such value as may be specified by him.

(2) The payment of tax on provisional basis may be allowed, if the taxableperson executes a bond in such form as may be prescribed, and with suchsurety or security as the proper officer may deem fit, binding the taxableperson for payment of the difference between the amount of tax as may befinally assessed and the amount of tax provisionally assessed.

(3) The proper officer shall, within a period not exceeding six monthsfrom the date of the communication of the order issued under sub-section(1), pass the final assessment order after taking into account such informationas may be required for finalizing the assessment :

Provided that the period specified in this sub-section may, on sufficientcause being shown and for reasons to be recorded in writing, be extended bythe Joint Commissioner or Additional Commissioner for a further periodnot exceeding six months and by the Commissioner for such further periodnot exceeding four years.

(4) The registered person shall be liable to pay interest on any taxpayable on the supply of goods or services or both under provisionalassessment but not paid on the due date specified under sub-section (7) ofsection 39 or the rules made thereunder, at the rate specified under sub-section (1) of section 50, from the first day after the due date of payment oftax in respect of the said supply of goods or services or both till the date ofactual payment, whether such amount is paid before or after the issuance oforder for final assessment.

(5) Where the registered person is entitled to a refund consequent tothe order of final assessment under sub-section (3), subject to the provisionsof sub-section (8) of section 54, interest shall be paid on such refund asprovided in section 56.

61. (1) The proper officer may scrutinize the return and relatedparticulars furnished by the registered person to verify the correctness ofthe return and inform him of the discrepancies noticed, if any, in such manneras may be prescribed and seek his explanation thereto.

Utilisationof Fund.

Self-assess-

ment.

Provisionalassess-

ment.

Scrutiny ofreturns.


(2) In case the explanation is found acceptable, the registered personshall be informed accordingly and no further action shall be taken in thisregard.

(3) In case no satisfactory explanation is furnished within a period ofthirty days of being informed by the proper officer or such further period asmay be permitted by him or where the registered person, after accepting thediscrepancies, fails to take the corrective measure in his return for the monthin which the discrepancy is accepted, the proper officer may initiateappropriate action including those under section 65 or section 66 or section67, or proceed to determine the tax and other dues under section 73 or section74.

62. (1) Notwithstanding anything to the contrary contained in section73 or section 74, where a registered person fails to furnish the return undersection 39 or section 45, even after the service of a notice under section 46,the proper officer may proceed to assess the tax liability of the said person tothe best of his judgement taking into account all the relevant material whichis available or which he has gathered and issue an assessment order within aperiod of five years from the date specified under section 44 for furnishing ofthe annual return for the financial year to which the tax not paid relates.

(2) Where the registered person furnishes a valid return within thirtydays of the service of the assessment order under sub-section (1), the saidassessment order shall be deemed to have been withdrawn but the liabilityfor payment of interest under sub-section (1) of section 50 or for payment oflate fee under section 47 shall continue.

63. Notwithstanding anything to the contrary contained in section 73or section 74,where a taxable person fails to obtain registration even thoughliable to do so or whose registration has been cancelled under sub-section (2)of section 29 but who was liable to pay tax, the proper officer may proceed toassess the tax liability of such taxable person to the best of his judgment forthe relevant tax periods and issue an assessment order within a period offive years from the date specified under section 44 for furnishing of the annualreturn for the financial year to which the tax not paid relates :

Provided that no such assessment order shall be passed without givingthe person an opportunity of being heard.

64. (1) The proper officer may, on any evidence showing a tax liabilityof a person coming to his notice, with the previous permission of AdditionalCommissioner or Joint Commissioner, proceed to assess the tax liability ofsuch person to protect the interest of revenue and issue an assessment order,if he has sufficient grounds to believe that any delay in doing so may adverselyaffect the interest of revenue :

Provided that where the taxable person to whom the liability pertainsis not ascertainable and such liability pertains to supply of goods, the personin charge of such goods shall be deemed to be the taxable person liable to beassessed and liable to pay tax and any other amount due under this section.

(2) On an application made by the taxable person within thirty daysfrom the date of receipt of order passed under sub-section (1) or on his ownmotion, if the Additional Commissioner or Joint Commissioner considersthat such order is erroneous, he may withdraw such order and follow theprocedure laid down in section 73 or section 74.

Assess-ment ofnon-filersof returns.

Assess-ment ofunregi-steredpersons.

Summaryassessmentin certainspecialcases.

¦ÉÉMÉ +É`ö--94-7+


CHAPTER XIIIAUDIT

65. (1) The Commissioner or any officer authorised by him, by way of ageneral or a specific order, may undertake audit of any registered person forsuch period, at such frequency and in such manner as may be prescribed.

(2) The officers referred to in sub-section (1) may conduct audit at theplace of business of the registered person or in their office.

(3) The registered person shall be informed by way of a notice not lessthan fifteen working days prior to the conduct of audit in such manner asmay be prescribed.

(4) The audit under sub-section (1) shall be completed within a periodof three months from the date of commencement of the audit :

Provided that where the Commissioner is satisfied that audit in respectof such registered person cannot be completed within three months, he may,for the reasons to be recorded in writing, extend the period by a furtherperiod not exceeding six months.

Explanation.––For the purposes of this sub-section, the expression“commencement of audit” shall mean the date on which the records and otherdocuments, called for by the tax authorities, are made available by theregistered person or the actual institution of audit at the place of business,whichever is later.

(5) During the course of audit, the authorised officer may require theregistered person,––

(i) to afford him the necessary facility to verify the books of accountor other documents as he may require ;

(ii) to furnish such information as he may require and renderassistance for timely completion of the audit.(6) On conclusion of audit, the proper officer shall, within thirty days,

inform the registered person, whose records are audited, about the findings,his rights and obligations and the reasons for such findings.

(7) Where the audit conducted under sub-section (1) results in detectionof tax not paid or short paid or erroneously refunded, or input tax creditwrongly availed or utilised, the proper officer may initiate action undersection 73 or section 74.

66. (1) If at any stage of scrutiny, inquiry, investigation or any otherproceedings before him, any officer not below the rank of AssistantCommissioner, having regard to the nature and complexity of the case andthe interest of revenue, is of the opinion that the value has not been correctlydeclared or the credit availed is not within the normal limits, he may, withthe prior approval of the Commissioner, direct such registered person by acommunication in writing to get his records including books of accountexamined and audited by a chartered accountant or a cost accountant as maybe nominated by the Commissioner.

(2) The chartered accountant or cost accountant so nominated shall,within the period of ninety days, submit a report of such audit duly signedand certified by him to the said Assistant Commissioner mentioning thereinsuch other particulars as may be specified :

Provided that the Assistant Commissioner may, on an application madeto him in this behalf by the registered person or the chartered accountant orcost accountant or for any material and sufficient reason, extend the saidperiod by a further period of ninety days.

Audit bytax

authorities.

Specialaudit.


(3) The provisions of sub-section (1) shall have effect notwithstandingthat the accounts of the registered person have been audited under any otherprovisions of this Act or any other law for the time being in force.

(4) The registered person shall be given an opportunity of being heardin respect of any material gathered on the basis of special audit under sub-section (1) which is proposed to be used in any proceedings against him underthis Act or the rules made thereunder.

(5) The expenses of the examination and audit of records under sub-section (1), including the remuneration of such chartered accountant or costaccountant, shall be determined and paid by the Commissioner and suchdetermination shall be final.

(6) Where the special audit conducted under sub-section (1) results indetection of tax not paid or short paid or erroneously refunded, or input taxcredit wrongly availed or utilised, the proper officer may initiate action undersection 73 or section 74.

CHAPTER XIVINSPECTION, SEARCH, SEIZURE AND ARREST

67. (1) Where the proper officer, not below the rank of JointCommissioner, has reasons to believe that––

(a) a taxable person has suppressed any transaction relating tosupply of goods or services or both or the stock of goods in hand, or hasclaimed input tax credit in excess of his entitlement under this Act orhas indulged in contravention of any of the provisions of this Act or therules made thereunder to evade tax under this Act ; or

(b) any person engaged in the business of transporting goods or anowner or operator of a warehouse or a godown or any other place iskeeping goods which have escaped payment of tax or has kept hisaccounts or goods in such a manner as is likely to cause evasion of taxpayable under this Act,

he may authorise in writing any other officer of State tax to inspect any placesof business of the taxable person or the persons engaged in the business oftransporting goods or the owner or the operator of warehouse or godown orany other place.

(2) Where the proper officer, not below the rank of Joint Commissioner,either pursuant to an inspection carried out under sub-section (1) orotherwise, has reasons to believe that any goods liable to confiscation or anydocuments or books or things, which in his opinion shall be useful for orrelevant to any proceedings under this Act, are secreted in any place, he mayauthorise in writing any other officer of State tax to search and seize or mayhimself search and seize such goods, documents or books or things :

Provided that where it is not practicable to seize any such goods, theproper officer, or any officer authorised by him, may serve on the owner orthe custodian of the goods an order that he shall not remove, part with, orotherwise deal with the goods except with the previous permission of suchofficer :

Provided further that the documents or books or things so seized shallbe retained by such officer only for so long as may be necessary for theirexamination and for any inquiry or proceedings under this Act.

(3) The documents, books or things referred to in sub-section (2) or anyother documents, books or things produced by a taxable person or any other

Power ofinspection,search andseizure.


person, which have not been relied upon for the issue of notice under thisAct or the rules made thereunder, shall be returned to such person within aperiod not exceeding thirty days of the issue of the said notice.

(4) The officer authorised under sub-section (2) shall have the power toseal or break open the door of any premises or to break open any almirah,electronic devices, box, receptacle in which any goods, accounts, registers ordocuments of the person are suspected to be concealed, where access to suchpremises, almirah, electronic devices, box or receptacle is denied.

(5) The person from whose custody any documents are seized undersub-section (2) shall be entitled to make copies thereof or take extractstherefrom in the presence of an authorised officer at such place and time assuch officer may indicate in this behalf except where making such copies ortaking such extracts may, in the opinion of the proper officer, prejudiciallyaffect the investigation.

(6) The goods so seized under sub-section (2) shall be released, on aprovisional basis, upon execution of a bond and furnishing of a security, insuch manner and of such quantum, respectively, as may be prescribed or onpayment of applicable tax, interest and penalty payable, as the case may be.

(7) Where any goods are seized under sub-section (2) and no notice inrespect thereof is given within six months of the seizure of the goods, thegoods shall be returned to the person from whose possession they were seized :

Provided that the period of six months may, on sufficient cause beingshown, be extended by the proper officer for a further period not exceedingsix months.

(8) The Government may, having regard to the perishable or hazardousnature of any goods, depreciation in the value of the goods with the passageof time, constraints of storage space for the goods or any other relevantconsiderations, by notification, specify the goods or class of goods which shall,as soon as may be after its seizure under sub-section (2), be disposed of by theproper officer in such manner as may be prescribed.

(9) Where any goods, being goods specified under sub-section (8), havebeen seized by a proper officer, or any officer authorised by him under sub-section (2), he shall prepare an inventory of such goods in such manner asmay be prescribed.

(10) The provisions of the Code of Criminal Procedure, 1973, relating tosearch and seizure, shall, so far as may be, apply to search and seizure underthis section subject to the modification that sub-section (5) of section 165 ofthe said Code shall have effect as if for the word “Magistrate”, wherever itoccurs, the word “Commissioner” were substituted.

(11) Where the proper officer has reasons to believe that any personhas evaded or is attempting to evade the payment of any tax, he may, forreasons to be recorded in writing, seize the accounts, registers or documentsof such person produced before him and shall grant a receipt for the same,and shall retain the same for so long as may be necessary in connection withany proceedings under this Act or the rules made thereunder for prosecution.

(12) The Commissioner or an officer authorised by him may causepurchase of any goods or services or both by any person authorised by himfrom the business premises of any taxable person, to check the issue of taxinvoices or bills of supply by such taxable person, and on return of goods sopurchased by such officer, such taxable person or any person in charge of thebusiness premises shall refund the amount so paid towards the goods aftercancelling any tax invoice or bill of supply issued earlier.

2 of1974.


68. (1) The Government may require the person in charge of aconveyance carrying any consignment of goods of value exceeding such amountas may be specified to carry with him such documents and such devices asmay be prescribed.

(2) The details of documents required to be carried under sub-section (1)shall be validated in such manner as may be prescribed.

(3) Where any conveyance referred to in sub-section (1) is interceptedby the proper officer at any place, he may require the person in charge of thesaid conveyance to produce the documents prescribed under the said sub-section and devices for verification, and the said person shall be liable toproduce the documents and devices and also allow the inspection of goods.

69. (1) Where the Commissioner has reasons to believe that personhas committed any offence specified in clause (a) or clause (b) or clause (c) orclause (d) of sub-section (1) of section 132 which is punishable under clause(i) or (ii) of sub-section (1), or sub-section (2) of the said section, he may, byorder, authorise any officer of State tax to arrest such person.

(2) Where a person is arrested under sub-section (1) for an offencespecified under sub-section (5) of section 132, the officer authorised to arrestthe person shall inform such person of the grounds of arrest and producehim before a Magistrate within twenty four hours.

(3) Subject to the provisions of the Code of Criminal Procedure, 1973,—(a) where a person is arrested under sub-section (1) for any offence

specified under sub-section (4) of section 132, he shall be admitted tobail or in default of bail, forwarded to the custody of the Magistrate ;

(b) in the case of a non-cognizable and bailable offence, the DeputyCommissioner or the Assistant Commissioner shall, for the purpose ofreleasing an arrested person on bail or otherwise, have the same powersand be subject to the same provisions as an officer-in-charge of a policestation.

70. (1) The proper officer under this Act shall have power to summonany person whose attendance he considers necessary either to give evidenceor to produce a document or any other thing in any inquiry in the same manner,as provided in the case of a civil court under the provisions of the Code ofCivil Procedure, 1908.

(2) Every such inquiry referred to in sub-section (1) shall be deemed tobe a “judicial proceedings” within the meaning of section 193 and section 228of the Indian Penal Code.

71. (1) Any officer under this Act, authorised by the proper officer notbelow the rank of Joint Commissioner, shall have access to any place ofbusiness of a registered person to inspect books of account, documents,computers, computer programs, computer software whether installed in acomputer or otherwise and such other things as he may require and whichmay be available at such place, for the purposes of carrying out any audit,scrutiny, verification and checks as may be necessary to safeguard the interestof revenue.

(2) Every person in charge of place referred to in sub-section (1) shall,on demand, make available to the officer authorised under sub-section (1) orthe audit party deputed by the proper officer or a cost accountant or charteredaccountant nominated under section 66––

(i) such records as prepared or maintained by the registered personand declared to the proper officer in such manner as may be prescribed ;

Inspectionof goods inmovement.

Power toarrest.

Power tosummonpersons togiveevidenceandproducedocuments.

2 of1974.

5 of1908.

45 of1860.

Access tobusinesspremises.


(ii) trial balance or its equivalent ;(iii) statements of annual financial accounts, duly audited, wherever

required ;(iv) cost audit report, if any, under section 148 of the Companies

Act, 2013 ;(v) the income-tax audit report, if any, under section 44AB of the

Income-tax Act, 1961 ; and(vi) any other relevant record,

for the scrutiny by the officer or audit party or the chartered accountant orcost accountant within a period not exceeding fifteen working days from theday when such demand is made, or such further period as may be allowed bythe said officer or the audit party or the chartered accountant or costaccountant.

72. (1) All officers of Police, Railways, Customs, and those officersengaged in the collection of land revenue, including village officers, officersof central tax and officers of the Union territory tax shall assist the properofficers in the implementation of this Act.

(2) The Government may, by notification, empower and require any otherclass of officers to assist the proper officers in the implementation of this Actwhen called upon to do so by the Commissioner.

CHAPTER XVDEMANDS AND RECOVERY

73. (1) Where it appears to the proper officer that any tax has not beenpaid or short paid or erroneously refunded, or where input tax credit hasbeen wrongly availed or utilised for any reason, other than the reason offraud or any wilful misstatement or suppression of facts to evade tax, heshall serve notice on the person chargeable with tax which has not been sopaid or which has been so short paid or to whom the refund has erroneouslybeen made, or who has wrongly availed or utilised input tax credit, requiringhim to show cause as to why he should not pay the amount specified in thenotice along with interest payable thereon under section 50 and a penaltyleviable under the provisions of this Act or the rules made thereunder.

(2) The proper officer shall issue the notice under sub-section (1) at leastthree months prior to the time limit specified in sub-section (10) for issuanceof order.

(3) Where a notice has been issued for any period under sub-section (1),the proper officer may serve a statement, containing the details of tax notpaid or short paid or erroneously refunded or input tax credit wrongly availedor utilised for such periods other than those covered under sub-section (1),on the person chargeable with tax.

(4) The service of such statement shall be deemed to be service of noticeon such person under sub-section (1), subject to the condition that the groundsrelied upon for such tax periods other than those covered under sub-section(1) are the same as are mentioned in the earlier notice.

(5) The person chargeable with tax may, before service of notice undersub-section (1) or, as the case may be, the statement under sub-section (3),

18 of2013.

43 of1961.

Officers toassist

properofficers.

Determina-tion of tax

not paid orshort paid

o rerroneously

refundedor input

tax creditwrongly

availed orutilised forany reasonother than

fraud orany wilfulmisstate-

ment orsuppre-ssion of

facts.


pay the amount of tax along with interest payable thereon under section 50on the basis of his own ascertainment of such tax or the tax as ascertained bythe proper officer and inform the proper officer in writing of such payment.

(6) The proper officer, on receipt of such information, shall not serveany notice under sub-section (1) or, as the case may be, the statement undersub-section (3), in respect of the tax so paid or any penalty payable under theprovisions of this Act or the rules made thereunder.

(7) Where the proper officer is of the opinion that the amount paid undersub-section (5) falls short of the amount actually payable, he shall proceed toissue the notice as provided for in sub-section (1) in respect of such amountwhich falls short of the amount actually payable.

(8) Where any person chargeable with tax under sub-section (1) or sub-section (3) pays the said tax along with interest payable under section 50within thirty days of issue of show cause notice, no penalty shall be payableand all proceedings in respect of the said notice shall be deemed to beconcluded.

(9) The proper officer shall, after considering the representation, if any,made by person chargeable with tax, determine the amount of tax, interestand a penalty equivalent to ten per cent. of tax or ten thousand rupees,whichever is higher, due from such person and issue an order.

(10) The proper officer shall issue the order under sub-section (9) withinthree years from the due date for furnishing of annual return for the financialyear to which the tax not paid or short paid or input tax credit wrongly availedor utilised relates to or within three years from the date of erroneous refund.

(11) Notwithstanding anything contained in sub-section (6) or sub-section (8), penalty under sub-section (9) shall be payable where any amountof self-assessed tax or any amount collected as tax has not been paid within aperiod of thirty days from the due date of payment of such tax.

74. (1) Where it appears to the proper officer that any tax has not beenpaid or short paid or erroneously refunded or where input tax credit hasbeen wrongly availed or utilised by reason of fraud, or any wilful misstatementor suppression of facts to evade tax, he shall serve notice on the personchargeable with tax which has not been so paid or which has been so shortpaid or to whom the refund has erroneously been made, or who has wronglyavailed or utilised input tax credit, requiring him to show cause as to why heshould not pay the amount specified in the notice along with interest payablethereon under section 50 and a penalty equivalent to the tax specified in thenotice.

(2) The proper officer shall issue the notice under sub-section (1) at leastsix months prior to the time limit specified in sub-section (10) for issuance oforder.

(3) Where a notice has been issued for any period under sub-section (1),the proper officer may serve a statement, containing the details of tax notpaid or short paid or erroneously refunded or input tax credit wrongly availedor utilised for such periods other than those covered under sub-section (1),on the person chargeable with tax.

(4) The service of statement under sub-section (3) shall be deemed to beservice of notice under sub-section (1) of section 73, subject to the condition

Determina-tion of taxnot paid orshort paido rerroneouslyrefundedor inputtax creditwronglyavailed orutilised byreason offraud orany wilfulmisstate-ment orsuppressionof facts.

¦ÉÉMÉ +É`ö--94-8


that the grounds relied upon in the said statement, except the ground offraud, or any wilful-misstatement or suppression of facts to evade tax, forperiods other than those covered under sub-section (1) are the same as arementioned in the earlier notice.

(5) The person chargeable with tax may, before service of notice undersub-section (1), pay the amount of tax along with interest payable undersection 50 and a penalty equivalent to fifteen per cent. of such tax on thebasis of his own ascertainment of such tax or the tax as ascertained by theproper officer and inform the proper officer in writing of such payment.

(6) The proper officer, on receipt of such information, shall not serveany notice under sub-section (1), in respect of the tax so paid or any penaltypayable under the provisions of this Act or the rules made thereunder.

(7) Where the proper officer is of the opinion that the amount paid undersub-section (5) falls short of the amount actually payable, he shall proceed toissue the notice as provided for in sub-section (1) in respect of such amountwhich falls short of the amount actually payable.

(8) Where any person chargeable with tax under sub-section (1) paysthe said tax along with interest payable under section 50 and a penaltyequivalent to twenty five per cent. of such tax within thirty days of issue ofthe notice, all proceedings in respect of the said notice shall be deemed to beconcluded.

(9) The proper officer shall, after considering the representation, if any,made by the person chargeable with tax, determine the amount of tax, interestand penalty due from such person and issue an order.

(10) The proper officer shall issue the order under sub-section (9) withina period of five years from the due date for furnishing of annual return forthe financial year to which the tax not paid or short paid or input tax creditwrongly availed or utilised relates to or within five years from the date oferroneous refund.

(11) Where any person served with an order issued under sub-section (9)pays the tax along with interest payable thereon under section 50 and apenalty equivalent to fifty per cent.of such tax within thirty days ofcommunication of the order, all proceedings in respect of the said noticeshall be deemed to be concluded.

Explanation1.– For the purposes of section 73 and this section, —(i) the expression “all proceedings in respect of the said notice” shall

not include proceedings under section 132 ;(ii)where the notice under the same proceedings is issued to the

main person liable to pay tax and some other persons, and suchproceedings against the main person have been concluded under section73 or section 74, the proceedings against all the persons liable to paypenalty under sections 122, 125, 129 and 130 are deemed to be concluded.

Explanation 2.––For the purposes of this Act, the expression“suppression” shall mean non-declaration of facts or information whicha taxable person is required to declare in the return, statement, reportor any other document furnished under this Act or the rules madethereunder, or failure to furnish any information on being asked for, inwriting, by the proper officer.

75. (1) Where the service of notice or issuance of order is stayed by anorder of a court or Appellate Tribunal, the period of such stay shall be excludedin computing the period specified in sub-sections (2) and (10) of section 73 orsub-sections (2) and (10) of section 74, as the case may be.

Generalprovisionsrelating to

determinationof tax.


(2) Where any Appellate Authority or Appellate Tribunal or courtconcludes that the notice issued under sub-section (1) of section 74 is notsustainable for the reason that the charges of fraud or any wilful misstatementor suppression of facts to evade tax has not been established against theperson to whom the notice was issued, the proper officer shall determine thetax payable by such person, deeming as if the notice were issued under sub-section (1) of section 73.

(3) Where any order is required to be issued in pursuance of the directionof the Appellate Authority or Appellate Tribunal or a court, such order shallbe issued within two years from the date of communication of the saiddirection.

(4) An opportunity of hearing shall be granted where a request isreceived in writing from the person chargeable with tax or penalty, or whereany adverse decision is contemplated against such person.

(5) The proper officer shall, if sufficient cause is shown by the personchargeable with tax, grant time to the said person and adjourn the hearingfor reasons to be recorded in writing :

Provided that no such adjournment shall be granted for more than threetimes to a person during the proceedings.

(6) The proper officer, in his order, shall set out the relevant facts andthe basis of his decision.

(7) The amount of tax, interest and penalty demanded in the order shallnot be in excess of the amount specified in the notice and no demand shall beconfirmed on the grounds other than the grounds specified in the notice.

(8) Where the Appellate Authority or Appellate Tribunal or courtmodifies the amount of tax determined by the proper officer, the amount ofinterest and penalty shall stand modified accordingly, taking into accountthe amount of tax so modified.

(9) The interest onthetax short paid or not paid shall be payable whetheror not specified in the order determining the tax liability.

(10) The adjudication proceedings shall be deemed to be concluded, ifthe order is not issued within three years as provided for in sub-section (10)of section 73 or within five years as provided for in sub-section (10) of section74.

(11) An issue on which the Appellate Authority or the Appellate Tribunalor the High Court has given its decision which is prejudicial to the interestof revenue in some other proceedings and an appeal to the Appellate Tribunalor the High Court or the Supreme Court against such decision of the AppellateAuthority or the Appellate Tribunal or the High Court is pending, the periodspent between the date of the decision of the Appellate Authority and that ofthe Appellate Tribunal or the date of decision of the Appellate Tribunal andthat of the High Court or the date of the decision of the High Court and thatof the Supreme Court shall be excluded in computing the period referred toin sub-section (10) of section 73 or sub-section (10) of section 74 whereproceedings are initiated by way of issue of a show cause notice under thesaid sections.

(12) Notwithstanding anything contained in section 73or section74,where any amount of self-assessed tax in accordance with a return furnishedunder section 39 remains unpaid, either wholly or partly, or any amount ofinterest payable on such tax remains unpaid, the same shall be recoveredunder the provisions of section 79.

(13) Where any penalty is imposed under section 73 or section 74, nopenalty for the same act or omission shall be imposed on the same personunder any other provision of this Act.

¦ÉÉMÉ +É`ö--94-8+


76. (1) Notwithstanding anything to the contrary contained in any orderor direction of any Appellate Authority or Appellate Tribunal or court or inany other provisions of this Act or the rules made thereunder or any otherlaw for the time being in force, every person who has collected from anyother person any amount as representing the tax under this Act, and has notpaid the said amount to the Government, shall forthwith pay the said amountto the Government, irrespective of whether the supplies in respect of whichsuch amount was collected are taxable or not.

(2) Where any amount is required to be paid to the Government undersub-section (1), and which has not been so paid, the proper officer may serveon the person liable to pay such amount a notice requiring him to show causeas to why the said amount as specified in the notice, should not be paid byhim to the Government and why a penalty equivalent to the amount specifiedin the notice should not be imposed on him under the provisions of this Act.

(3) The proper officer shall, after considering the representation, if any,made by the person on whom the notice is served under sub-section (2),determine the amount due from such person and thereupon such person shallpay the amount so determined.

(4) The person referred to in sub-section (1) shall in addition to payingthe amount referred to in sub-section (1) or sub-section (3) also be liable topay interest thereon at the rate specified under section 50 from the datesuch amount was collected by him to the date such amount is paid by him tothe Government.

(5) An opportunity of hearing shall be granted where a request isreceived in writing from the person to whom the notice was issued to showcause.

(6) The proper officer shall issue an order within one year from thedate of issue of the notice.

(7) Where the issuance of order is stayed by an order of the court orAppellate Tribunal, the period of such stay shall be excluded in computingthe period of one year.

(8) The proper officer, in his order, shall set out the relevant facts andthe basis of his decision.

(9) The amount paid to the Government under sub-section (1) or sub-section (3) shall be adjusted against the tax payable, if any, by the person inrelation to the supplies referred to in sub-section (1).

(10) Where any surplus is left after the adjustment under sub-section(9), the amount of such surplus shall either be credited to the Fund or refundedto the person who has borne the incidence of such amount.

(11) The person, who has borne the incidence of the amount, may applyfor the refund of the same in accordance with the provisions of section 54.

77. (1) A registered person who has paid the central tax and State taxon a transaction considered by him to be an intra-State supply, but which issubsequently held to be an inter-State supply, shall be refunded the amountof taxes so paid in such manner and subject to such conditions as may beprescribed.

(2) A registered person who has paid integrated tax on a transactionconsidered by him to be an inter-State supply, but which is subsequentlyheld to be an intra-State supply, shall not be required to pay any interest onthe amount of State tax payable.

Taxcollected

but notpaid to

Government.

Taxwrongfully

collectedand paid to

CentralGovernment

or StateGovernment.


78. Any amount payable by a taxable person in pursuance of an orderpassed under this Act shall be paid by such person within a period of threemonths from the date of service of such order failing which recoveryproceedings shall be initiated :

Provided that where the proper officer considers it expedient in theinterest of revenue, he may, for reasons to be recorded in writing, requirethe said taxable person to make such payment within such period less than aperiod of three months as may be specified by him.

79. (1) Where any amount payable by a person to the Government underany of the provisions of this Act or the rules made thereunder is not paid, theproper officer shall proceed to recover the amount by one or more of thefollowing modes, namely :––

(a) the proper officer may deduct or may require any other specifiedofficer to deduct the amount so payable from any money owing to such personwhich may be under the control of the proper officer or such other specifiedofficer ;

(b) the proper officer may recover or may require any other specifiedofficer to recover the amount so payable by detaining and selling any goodsbelonging to such person which are under the control of the proper officer orsuch other specified officer ;

(c) (i) the proper officer may, by a notice in writing, require any otherperson from whom money is due or may become due to such person or whoholds or may subsequently hold money for or on account of such person, topay to the Government either forthwith upon the money becoming due orbeing held, or within the time specified in the notice not being before themoney becomes due or is held, so much of the money as is sufficient to paythe amount due from such person or the whole of the money when it is equalto or less than that amount ;

(ii) every person to whom the notice is issued under sub-clause (i) shallbe bound to comply with such notice, and in particular, where any such noticeis issued to a post office, banking company or an insurer, it shall not benecessary to produce any pass book, deposit receipt, policy or any otherdocument for the purpose of any entry, endorsement or the like being madebefore payment is made, notwithstanding any rule, practice or requirementto the contrary ;

(iii) in case the person to whom a notice under sub-clause (i) has beenissued, fails to make the payment in pursuance thereof to the Government,he shall be deemed to be a defaulter in respect of the amount specified in thenotice and all the consequences of this Act or the rules made thereundershall follow ;

(iv) the officer issuing a notice under sub-clause (i) may, at any time,amend or revoke such notice or extend the time for making any payment inpursuance of the notice ;

(v) any person making any payment in compliance with a notice issuedunder sub-clause (i) shall be deemed to have made the payment under theauthority of the person in default and such payment being credited to theGovernment shall be deemed to constitute a good and sufficient discharge ofthe liability of such person to the person in default to the extent of the amountspecified in the receipt ;

Initiationof recoveryproceedings.

Recoveryof tax.


(vi) any person discharging any liability to the person in default afterservice on him of the notice issued under sub-clause (i) shall be personallyliable to the Government to the extent of the liability discharged or to theextent of the liability of the person in default for tax, interest and penalty,whichever is less ;

(vii) where a person on whom a notice is served under sub-clause (i)proves to the satisfaction of the officer issuing the notice that the moneydemanded or any part thereof was not due to the person in default or that hedid not hold any money for or on account of the person in default, at the timethe notice was served on him, nor is the money demanded or any part thereof,likely to become due to the said person or be held for or on account of suchperson, nothing contained in this section shall be deemed to require theperson on whom the notice has been served to pay to the Government anysuch money or part thereof ;

(d) the proper officer may, in accordance with the rules to be made inthis behalf, distrain any movable or immovable property belonging to or underthe control of such person, and detain the same until the amount payable ispaid ; and in case, any part of the said amount payable or of the cost of thedistress or keeping of the property, remains unpaid for a period of thirtydays next after any such distress, may cause the said property to be sold andwith the proceeds of such sale, may satisfy the amount payable and the costsincluding cost of sale remaining unpaid and shall render the surplus amount,if any, to such person ;

(e) the proper officer may prepare a certificate signed by him specifyingthe amount due from such person and send it to the Collector of the districtin which such person owns any property or resides or carries on his businessor to any officer authorised by the Government and the said Collector or thesaid officer, on receipt of such certificate, shall proceed to recover from suchperson the amount specified thereunder as if it were an arrear of landrevenue ;

(f) notwithstanding anything contained in the Code of CriminalProcedure, 1973, the proper officer may file an application to the appropriateMagistrate and such Magistrate shall proceed to recover from such personthe amount specified thereunder as if it were a fine imposed by him.

(2) Where the terms of any bond or other instrument executed underthis Act or any rules or regulations made thereunder provide that any amountdue under such instrument may be recovered in the manner laid down insub-section (1), the amount may, without prejudice to any other mode ofrecovery, be recovered in accordance with the provisions of that sub-section.

(3) Where any amount of tax, interest or penalty is payable by a personto the Government under any of the provisions of this Act or the rules madethereunder and which remains unpaid, the proper officer of central tax, duringthe course of recovery of said tax arrears, may recover the amount from thesaid person as if it were an arrear of central tax and credit the amount sorecovered to the account of the Government.

(4) Where the amount recovered under sub-section (3) is less than theamount due to the Central Government and State Government, the amountto be credited to the account of the respective Governments shall be inproportion to the amount due to each such Government.

2 of1974.


80. On an application filed by a taxable person, the Commissioner may,for reasons to be recorded in writing, extend the time for payment or allowpayment of any amount due under this Act, other than the amount due as perthe liability self-assessed in any return, by such person in monthly instalmentsnot exceeding twenty four, subject to payment of interest under section 50and subject to such conditions and limitations as may be prescribed :

Provided that where there is default in payment of any one instalmenton its due date, the whole outstanding balance payable on such date shallbecome due and payable forthwith and shall, without any further notice beingserved on the person, be liable for recovery.

81. Where a person, after any amount has become due from him, createsa charge on or parts with the property belonging to him or in his possessionby way of sale, mortgage, exchange, or any other mode of transfer whatsoeverof any of his properties in favour of any other person with the intention ofdefrauding the Government revenue, such charge or transfer shall be void asagainst any claim in respect of any tax or any other sum payable by the saidperson :

Provided that, such charge or transfer shall not be void if it is made foradequate consideration, in good faith and without notice of the pendency ofsuch proceedings under this Act or without notice of such tax or other sumpayable by the said person, or with the previous permission of the properofficer.

82. Notwithstanding anything to the contrary contained in any law forthe time being in force, save as otherwise provided in the Insolvency andBankruptcy Code, 2016, any amount payable by a taxable person or any otherperson on account of tax, interest or penalty which he is liable to pay to theGovernment shall be a first charge on the property of such taxable person orsuch person.

83. (1) Where during the pendency of any proceedings under section62 or section 63 or section 64 or section 67 or section 73 or section 74, theCommissioner is of the opinion that for the purpose of protecting the interestof the Government revenue, it is necessary so to do, he may, by order inwriting attach provisionally any property, including bank account, belongingto the taxable person in such manner as may be prescribed.

(2) Every such provisional attachment shall cease to have effect afterthe expiry of a period of one year from the date of the order made under sub-section (1).

84. Where any notice of demand in respect of any tax, penalty, interestor any other amount payable under this Act, (hereafter in this section referredto as “Government dues”), is served upon any taxable person or any otherperson and any appeal or revision application is filed or any other proceedingsis initiated in respect of such Government dues, then––

(a) where such Government dues are enhanced in such appeal,revision or other proceedings, the Commissioner shall serve upon thetaxable person or any other person another notice of demand in respectof the amount by which such Government dues are enhanced and anyrecovery proceedings in relation to such Government dues as are coveredby the notice of demand served upon him before the disposal of suchappeal, revision or other proceedings may, without the service of anyfresh notice of demand, be continued from the stage at which suchproceedings stood immediately before such disposal ;

Payment oftax andotheramount ininstalments.

Transfer ofproperty tobe void incertaincases.

Tax to befirstcharge onproperty.31 of

2016.

Provisionalattachmentto protectrevenue incertaincases.

Continua-tion andvalidationof certainrecoveryproceedings.


(b) where such Government dues are reduced in such appeal,revision or in other proceedings––

(i) it shall not be necessary for the Commissioner to serve uponthe taxable person a fresh notice of demand ;

(ii) the Commissioner shall give intimation of such reductionto him and to the appropriate authority with whom recoveryproceedings is pending ;

(iii) any recovery proceedings initiated on the basis of thedemand served upon him prior to the disposal of such appeal,revision or other proceedings may be continued in relation to theamount so reduced from the stage at which such proceedings stoodimmediately before such disposal.

CHAPTER XVILIABILITY TO PAY IN CERTAIN CASES

85. (1) Where a taxable person, liable to pay tax under this Act,transfers his business in whole or in part, by sale, gift, lease, leave and license,hire or in any other manner whatsoever, the taxable person and the personto whom the business is so transferred shall, jointly and severally, be liablewholly or to the extent of such transfer, to pay the tax, interest or any penaltydue from the taxable person upto the time of such transfer, whether suchtax, interest or penalty has been determined before such transfer, but hasremained unpaid or is determined thereafter.

(2) Where the transferee of a business referred to in sub-section (1)carries on such business either in his own name or in some other name, heshall be liable to pay tax on the supply of goods or services or both effected byhim with effect from the date of such transfer and shall, if he is a registeredperson under this Act, apply within the prescribed time for amendment ofhis certificate of registration.

86. Where an agent supplies or receives any taxable goods on behalf ofhis principal, such agent and his principal shall, jointly and severally, beliable to pay the tax payable on such goods under this Act.

87. (1) When two or more companies are amalgamated or merged inpursuance of an order of court or of Tribunal or otherwise and the order is totake effect from a date earlier to the date of the order and any two or more ofsuch companies have supplied or received any goods or services or both to orfrom each other during the period commencing on the date from which theorder takes effect till the date of the order, then such transactions of supplyand receipt shall be included in the turnover of supply or receipt of therespective companies and they shall be liable to pay tax accordingly.

(2) Notwithstanding anything contained in the said order, for thepurposes of this Act, the said two or more companies shall be treated asdistinct companies for the period up to the date of the said order and theregistration certificates of the said companies shall be cancelled with effectfrom the date of the said order.

88. (1) When any company is being wound up whether under the ordersof a court or Tribunal or otherwise, every person appointed as receiver ofany assets of a company (hereafter in this section referred to as the“liquidator”), shall, within thirty days after his appointment, give intimationof his appointment to the Commissioner.

Liability incase of

transfer ofbusiness.

Liability ofagent andprincipal.

Liability incase of

amalgama-tion or

merger ofcompanies.

Liability incase of

company inliquidation.


(2) The Commissioner shall, after making such inquiry or calling forsuch information as he may deem fit, notify the liquidator within three monthsfrom the date on which he receives intimation of the appointment of theliquidator, the amount which in the opinion of the Commissioner would besufficient to provide for any tax, interest or penalty which is then, or is likelythereafter to become, payable by the company.

(3) When any private company is wound up and any tax, interest orpenalty determined under this Act on the company for any period, whetherbefore or in the course of or after its liquidation, cannot be recovered, thenevery person who was a director of such company at any time during theperiod for which the tax was due shall, jointly and severally, be liable for thepayment of such tax, interest or penalty, unless he proves to the satisfactionof the Commissioner that such non-recovery cannot be attributed to any grossneglect, misfeasance or breach of duty on his part in relation to the affairs ofthe company.

89. (1) Notwithstanding anything contained in the Companies Act, 2013,where any tax, interest or penalty due from a private company in respect ofany supply of goods or services or both for any period cannot be recovered,then, every person who was a director of the private company during suchperiod shall, jointly and severally, be liable for the payment of such tax,interest or penalty unless he proves that the non-recovery cannot be attributedto any gross neglect, misfeasance or breach of duty on his part in relation tothe affairs of the company.

(2) Where a private company is converted into a public company andthe tax, interest or penalty in respect of any supply of goods or services orboth for any period during which such company was a private company cannotbe recovered before such conversion, then, nothing contained in sub-section(1) shall apply to any person who was a director of such private company inrelation to any tax, interest or penalty in respect of such supply of goods orservices or both of such private company :

Provided that nothing contained in this sub-section shall apply to anypersonal penalty imposed on such director.

90. Notwithstanding any contract to the contrary and any other lawfor the time being in force, where any firm is liable to pay any tax, interest orpenalty under this Act, the firm and each of the partners of the firm shall,jointly and severally, be liable for such payment :

Provided that where any partner retires from the firm, he or the firm,shall intimate the date of retirement of the said partner to the Commissionerby a notice in that behalf in writing and such partner shall be liable to paytax, interest or penalty due upto the date of his retirement whetherdetermined or not, on that date :

Provided further that if no such intimation is given within one monthfrom the date of retirement, the liability of such partner under the first provisoshall continue until the date on which such intimation is received by theCommissioner.

91. Where the business in respect of which any tax, interest or penaltyis payable under this Act is carried on by any guardian, trustee or agent of aminor or other incapacitated person on behalf of and for the benefit of suchminor or other incapacitated person, the tax, interest or penalty shall belevied upon and recoverable from such guardian, trustee or agent in likemanner and to the same extent as it would be determined and recoverable

Liability ofdirectorsof privatecompany.

18 of2013.

Liability ofpartners offirm to paytax.

Liability ofguardians,trustees,etc.

¦ÉÉMÉ +É`ö--94-9


from any such minor or other incapacitated person, as if he were a major orcapacitated person and as if he were conducting the business himself, and allthe provisions of this Act or the rules made thereunder shall applyaccordingly.

92. Where the estate or any portion of the estate of a taxable personowning a business in respect of which any tax, interest or penalty is payableunder this Act is under the control of the Court of Wards, the AdministratorGeneral, the Official Trustee or any receiver or manager (including anyperson, whatever be his designation, who in fact manages the business)appointed by or under any order of a court, the tax, interest or penalty shallbe levied upon and be recoverable from such Court of Wards, AdministratorGeneral, Official Trustee, receiver or manager in like manner and to thesame extent as it would be determined and be recoverable from the taxableperson as if he were conducting the business himself, and all the provisionsof this Act or the rules made thereunder shall apply accordingly.

93. (1) Save as otherwise provided in the Insolvency and BankruptcyCode, 2016, where a person, liable to pay tax, interest or penalty under thisAct, dies, then––

(a) if a business carried on by the person is continued after his deathby his legal representative or any other person, such legal representativeor other person, shall be liable to pay tax, interest or penalty due fromsuch person under this Act ; and

(b) if the business carried on by the person is discontinued, whetherbefore or after his death, his legal representative shall be liable to pay,out of the estate of the deceased, to the extent to which the estate iscapable of meeting the charge, the tax, interest or penalty due from suchperson under this Act,

whether such tax, interest or penalty has been determined before his deathbut has remained unpaid or is determined after his death.

(2) Save as otherwise provided in the Insolvency and Bankruptcy Code,2016, where a taxable person, liable to pay tax, interest or penalty under thisAct, is a Hindu Undivided Family or an association of persons and the propertyof the Hindu Undivided Family or the association of persons is partitionedamongst the various members or groups of members, then, each member orgroup of members shall, jointly and severally, be liable to pay the tax, interestor penalty due from the taxable person under this Act upto the time of thepartition whether such tax, penalty or interest has been determined beforepartition but has remained unpaid or is determined after the partition.

(3) Save as otherwise provided in the Insolvency and Bankruptcy Code,2016, where a taxable person, liable to pay tax, interest or penalty under thisAct, is a firm, and the firm is dissolved, then, every person who was a partnershall, jointly and severally, be liable to pay the tax, interest or penalty duefrom the firm under this Act upto the time of dissolution whether such tax,interest or penalty has been determined before the dissolution, but hasremained unpaid or is determined after dissolution.

(4) Save as otherwise provided in the Insolvency and Bankruptcy Code,2016, where a taxable person liable to pay tax, interest or penalty under thisAct,—

(a) is the guardian of a ward on whose behalf the business is carriedon by the guardian ; or

Liability ofCourt of

Wards, etc.

Specialprovisionsregarding

liability topay tax,

interest orpenalty in

certaincases.

31 of2016.

31 of2016.

31 of2016.

31 of2016.


(b) is a trustee who carries on the business under a trust for abeneficiary,

then, if the guardianship or trust is terminated, the ward or the beneficiaryshall be liable to pay the tax, interest or penalty due from the taxable personupto the time of the termination of the guardianship or trust, whether suchtax, interest or penalty has been determined before the termination ofguardianship or trust but has remained unpaid or is determined thereafter.

94. (1) Where a taxable person is a firm or an association of persons ora Hindu Undivided Family and such firm, association or family hasdiscontinued business––

(a) the tax, interest or penalty payable under this Act by such firm,association or family upto the date of such discontinuance may bedetermined as if no such discontinuance had taken place ; and

(b) every person who, at the time of such discontinuance, was apartner of such firm, or a member of such association or family, shall,notwithstanding such discontinuance, jointly and severally, be liable forthe payment of tax and interest determined and penalty imposed andpayable by such firm, association or family, whether such tax and interesthas been determined or penalty imposed prior to or after suchdiscontinuance and subject as aforesaid, the provisions of this Act shall,so far as may be, apply as if every such person or partner or memberwere himself a taxable person.(2) Where a change has occurred in the constitution of a firm or an

association of persons, the partners of the firm or members of association, asit existed before and as it exists after the reconstitution, shall, withoutprejudice to the provisions of section 90, jointly and severally, be liable topay tax, interest or penalty due from such firm or association for any periodbefore its reconstitution.

(3) The provisions of sub-section (1) shall, so far as may be, apply wherethe taxable person, being a firm or association of persons is dissolved orwhere the taxable person, being a Hindu Undivided Family, has effectedpartition with respect to the business carried on by it and accordinglyreferences in that sub-section to discontinuance shall be construed asreference to dissolution or to partition.

Explanation.––For the purposes of this Chapter,––(i) a “Limited Liability Partnership” formed and registered under

the provisions of the Limited Liability Partnership Act, 2008 shall alsobe considered as a firm ;

(ii) “court” means the District Court, High Court or Supreme Court.

CHAPTER XVIIADVANCE RULING

95. In this Chapter, unless the context otherwise requires,––(a) “advance ruling” means a decision provided by the Authority or

the Appellate Authority to an applicant on matters or on questionsspecified in sub-section (2) of section 97 or sub-section (1) of section 100,in relation to the supply of goods or services or both being undertakenor proposed to be undertaken by the applicant ;

(b) “Appellate Authority” means the Appellate Authority forAdvance Ruling constituted under section 99 ;

Liability inothercases.

6 of2009.

Definitions.

¦ÉÉMÉ +É`ö--94-9+


(c) “applicant” means any person registered or desirous of obtainingregistration under this Act ;

(d) “application” means an application made to the Authority undersub-section (1) of section 97 ;

(e) “Authority” means the Authority for Advance Ruling, constitutedunder section 96.

96. (1) The Government shall, by notification, constitute an Authorityto be known as the Maharashtra Authority for Advance Ruling :

Provided that the Government may, on the recommendation of theCouncil, notify any Authority located in another State to act as the Authorityfor the State.

(2) The Authority shall consist of—(i) one member from amongst the officers of central tax ; and(ii) one member from amongst the officers of State tax,

to be appointed by the Central Government and the State Government,respectively.

(3) The qualifications, the method of appointment of the members andthe terms and conditions of their services shall be such as may be prescribed.

97. (1) An applicant desirous of obtaining an advance ruling under thisChapter may make an application in such form and manner and accompaniedby such fee as may be prescribed, stating the question on which the advanceruling is sought.

(2) The question on which the advance ruling is sought under this Act,shall be in respect of,—

(a) classification of any goods or services or both ;(b) applicability of a notification issued under the provisions of this

Act ;(c) determination of time and value of supply of goods or services or

both ;(d) admissibility of input tax credit of tax paid or deemed to have

been paid ;(e) determination of the liability to pay tax on any goods or services

or both ;(f) whether applicant is required to be registered ;(g) whether any particular thing done by the applicant with respect

to any goods or services or both amounts to or results in a supply ofgoods or services or both, within the meaning of that term.

98. (1) On receipt of an application, the Authority shall cause a copythereof to be forwarded to the concerned officer and, if necessary, call uponhim to furnish the relevant records :

Provided that where any records have been called for by the Authorityin any case, such records shall, as soon as possible, be returned to the saidconcerned officer.

(2) The Authority may, after examining the application and the recordscalled for and after hearing the applicant or his authorised representativeand the concerned officer or his authorised representative, by order, eitheradmit or reject the application :

Constitutiono f

Authorityfo r

AdvanceRuling.

Applicationfo r

advanceruling.

Procedureon receipt

o fapplication.


Provided that the Authority shall not admit the application where thequestion raised in the application is already pending or decided in anyproceedings in the case of an applicant under any of the provisions of thisAct :

Provided further that no application shall be rejected under this sub-section unless an opportunity of hearing has been given to the applicant :

Provided also that where the application is rejected, the reasons for suchrejection shall be specified in the order.

(3) A copy of every order made under sub-section (2) shall be sent to theapplicant and to the concerned officer.

(4) Where an application is admitted under sub-section (2), the Authorityshall, after examining such further material as may be placed before it by theapplicant or obtained by the Authority and after providing an opportunity ofbeing heard to the applicant or his authorised representative as well as tothe concerned officer or his authorised representative, pronounce its advanceruling on the question specified in the application.

(5) Where the members of the Authority differ on any question on whichthe advance ruling is sought, they shall state the point or points on whichthey differ and make a reference to the Appellate Authority for hearing anddecision on such question.

(6) The Authority shall pronounce its advance ruling in writing withinninety days from the date of receipt of application.

(7) A copy of the advance ruling pronounced by the Authority duly signedby the members and certified in such manner as may be prescribed shall besent to the applicant, the concerned officer and the jurisdictional officer aftersuch pronouncement.

99. The Government shall, by notification, constitute an Authority tobe known as Maharashtra Appellate Authority for Advance Ruling for Goodsand Services Tax for hearing appeals against the advance ruling pronouncedby the Advance Ruling Authority consisting of,—

(i) the Chief Commissioner of central tax as designated by the Board ;and

(ii) the Commissioner of State tax :

Provided that the Government may, on the recommendations of theCouncil, notify any Appellate Authority located in another State or Unionterritory to act as the Appellate Authority for the State.

100. (1) The concerned officer, the jurisdictional officer or an applicantaggrieved by any advance ruling pronounced under sub-section (4) of section98, may appeal to the Appellate Authority.

(2) Every appeal under this section shall be filed within a period of thirtydays from the date on which the ruling sought to be appealed against iscommunicated to the concerned officer, the jurisdictional officer and theapplicant :

Provided that the Appellate Authority may, if it is satisfied that theappellant was prevented by a sufficient cause from presenting the appealwithin the said period of thirty days, allow it to be presented within a furtherperiod not exceeding thirty days.

Constitutiono fAppellateAuthorityfo rAdvanceRuling.

Appeal totheAppellateAuthority.


(3) Every appeal under this section shall be in such form, accompaniedby such fee and verified in such manner as may be prescribed.

101. (1) The Appellate Authority may, after giving the parties to theappeal or reference an opportunity of being heard, pass such order as it thinksfit, confirming or modifying the ruling appealed against or referred to.

(2) The order referred to in sub-section (1) shall be passed within a periodof ninety days from the date of filing of the appeal under section 100 or areference under sub-section (5) of section 98.

(3) Where the members of the Appellate Authority differ on any pointor points referred to in appeal or reference, it shall be deemed that no advanceruling can be issued in respect of the question under the appeal or reference.

(4) A copy of the advance ruling pronounced by the Appellate Authorityduly signed by the Members and certified in such manner as may be prescribedshall be sent to the applicant, the concerned officer, the jurisdictional officerand to the Authority after such pronouncement.

102. The Authority or the Appellate Authority may amend any orderpassed by it under section 98 or section 101, so as to rectify any error apparenton the face of the record, if such error is noticed by the Authority or theAppellate Authority on its own accord, or is brought to its notice by theconcerned officer, the jurisdictional officer, or the applicant or the appellantwithin a period of six months from the date of the order :

Provided that no rectification which has the effect of enhancing the taxliability or reducing the amount of admissible input tax credit shall be madeunless the applicant or the appellant has been given an opportunity of beingheard.

103. (1) The advance ruling pronounced by the Authority or theAppellate Authority under this Chapter shall be binding only -

(a) on the applicant who had sought it in respect of any matterreferred to in sub-section (2) of section 97 for advance ruling ;

(b) on the concerned officer or the jurisdictional officer in respectof the applicant.(2) The advance ruling referred to in sub-section (1) shall be binding

unless the law, facts or circumstances supporting the original advance rulinghave changed.

104. (1) Where the Authority or the Appellate Authority finds thatadvance ruling pronounced by it under sub-section (4) of section 98 or undersub-section (1) of section 101 has been obtained by the applicant or theappellant by fraud or suppression of material facts or misrepresentation offacts, it may, by order, declare such ruling to be void ab-initio and thereuponall the provisions of this Act or the rules made thereunder shall apply to theapplicant or the appellant as if such advance ruling had never been made :

Provided that no order shall be passed under this sub-section unless anopportunity of being heard has been given to the applicant or the appellant.

Explanation.––The period beginning with the date of such advance rulingand ending with the date of order under this sub-section shall be excludedwhile computing the period specified in sub-sections (2) and (10) of section73 or sub-sections (2) and (10) of section 74.

(2) A copy of the order made under sub-section (1) shall be sent to theapplicant, the concerned officer and the jurisdictional officer.

Orders ofAppellate

Authority.

Rectificationof advance

ruling.

Applicabilityof advance

ruling.

Advanceruling to

be void incertain

circumstances.


105. (1) The Authority or the Appellate Authority shall, for the purposeof exercising its powers regarding –

(a) discovery and inspection ;(b) enforcing the attendance of any person and examining him on

oath ;(c) issuing commissions and compelling production of books of

account and other records,have all the powers of a civil court under the Code of Civil Procedure, 1908.

(2) The Authority or the Appellate Authority shall be deemed to be acivil court for the purposes of section 195, but not for the purposes of ChapterXXVI of the Code of Criminal Procedure, 1973, and every proceeding beforethe Authority or the Appellate Authority shall be deemed to be a judicialproceedings within the meaning of sections 193 and 228, and for the purposeof section 196 of the Indian Penal Code.

106. The Authority or the Appellate Authority shall, subject to theprovisions of this Chapter, have power to regulate its own procedure.

CHAPTER–XVIIIAPPEALS AND REVISION

107. (1) Any person aggrieved by any decision or order passed underthis Act or the Central Goods and Services Tax Act by an adjudicating authoritymay appeal to such Appellate Authority as may be prescribed within threemonths from the date on which the said decision or order is communicatedto such person.

(2) The Commissioner may, on his own motion, or upon request fromthe Commissioner of central tax, call for and examine the record of anyproceeding in which an adjudicating authority has passed any decision ororder under this Act or the Central Goods and Services Tax Act, for thepurpose of satisfying himself as to the legality or propriety of the said decisionor order and may, by order, direct any officer subordinate to him to apply tothe Appellate Authority within six months from the date of communicationof the said decision or order for the determination of such points arising outof the said decision or order as may be specified by the Commissioner in hisorder.

(3) Where, in pursuance of an order under sub-section (2), the authorisedofficer makes an application to the Appellate Authority, such applicationshall be dealt with by the Appellate Authority as if it were an appeal madeagainst the decision or order of the adjudicating authority and such authorisedofficer were an appellant and the provisions of this Act relating to appealsshall apply to such application.

(4) The Appellate Authority may, if he is satisfied that the appellantwas prevented by sufficient cause from presenting the appeal within theaforesaid period of three months or six months, as the case may be, allow itto be presented within a further period of one month.

(5) Every appeal under this section shall be in such form and shall beverified in such manner as may be prescribed.

(6) No appeal shall be filed under sub-section (1), unless the appellanthas paid–

(a) in full, such part of the amount of tax, interest, fine, fee andpenalty arising from the impugned order, as is admitted by him ; and

(b) a sum equal to ten per cent. of the remaining amount of tax indispute arising from the said order, in relation to which the appeal hasbeen filed.

Powers ofAuthorityandAppellateAuthority.

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(7) Where the appellant has paid the amount under sub-section (6), therecovery proceedings for the balance amount shall be deemed to be stayed.

(8) The Appellate Authority shall give an opportunity to the appellantof being heard.

(9) The Appellate Authority may, if sufficient cause is shown at any stageof hearing of an appeal, grant time to the parties or any of them and adjournthe hearing of the appeal for reasons to be recorded in writing :

Provided that no such adjournment shall be granted more than threetimes to a party during hearing of the appeal.

(10) The Appellate Authority may, at the time of hearing of an appeal,allow an appellant to add any ground of appeal not specified in the groundsof appeal, if it is satisfied that the omission of that ground from the groundsof appeal was not wilful or unreasonable.

(11) The Appellate Authority shall, after making such further inquiryas may be necessary, pass such order, as it thinks just and proper, confirming,modifying or annulling the decision or order appealed against but shall notrefer the case back to the adjudicating authority that passed the said decisionor order :

Provided that an order enhancing any fee or penalty or fine in lieu ofconfiscation or confiscating goods of greater value or reducing the amount ofrefund or input tax credit shall not be passed unless the appellant has beengiven a reasonable opportunity of showing cause against the proposed order :

Provided further that where the Appellate Authority is of the opinionthat any tax has not been paid or short-paid or erroneously refunded, orwhere input tax credit has been wrongly availed or utilised, no order requiringthe appellant to pay such tax or input tax credit shall be passed unless theappellant is given notice to show cause against the proposed order and theorder is passed within the time limit specified under section 73 or section74.

(12) The order of the Appellate Authority disposing of the appeal shallbe in writing and shall state the points for determination, the decision thereonand the reasons for such decision.

(13) The Appellate Authority shall, where it is possible to do so, hearand decide every appeal within a period of one year from the date on whichit is filed :

Provided that where the issuance of order is stayed by an order of acourt or Tribunal, the period of such stay shall be excluded in computing theperiod of one year.

(14) On disposal of the appeal, the Appellate Authority shallcommunicate the order passed by it to the appellant, respondent and to theadjudicating authority.

(15) A copy of the order passed by the Appellate Authority shall also besent to the Commissioner or the authority designated by him in this behalfand the jurisdictional Commissioner of Central tax or an authority designatedby him in this behalf.

(16) Every order passed under this section shall, subject to the provisionsof section 108 or section 113 or section 117 or section 118 be final and bindingon the parties.


108. (1) Subject to the provisions of section 121 and any rules madethereunder, the Revisional Authority may, on his own motion, or uponinformation received by him or on request from the Commissioner of centraltax, call for and examine the record of any proceedings, and if he considersthat any decision or order passed under this Act or under the Central Goodsand Services Tax Act by any officer subordinate to him is erroneous in so faras it is prejudicial to the interest of revenue and is illegal or improper or hasnot taken into account certain material facts, whether available at the timeof issuance of the said order or not or in consequence of an observation by theComptroller and Auditor General of India, he may, if necessary, stay theoperation of such decision or order for such period as he deems fit and aftergiving the person concerned an opportunity of being heard and after makingsuch further inquiry as may be necessary, pass such order, as he thinks justand proper, including enhancing or modifying or annulling the said decisionor order.

(2) The Revisional Authority shall not exercise any power under sub-section (1), if––

(a) the order has been subject to an appeal under section 107 orsection 112 or section 117 or section 118 ; or

(b) the period specified under sub-section (2) of section 107 has notyet expired or more than three years have expired after the passing ofthe decision or order sought to be revised ; or

(c) the order has already been taken for revision under this sectionat an earlier stage ; or

(d) the order has been passed in exercise of the powers under sub-section (1) :Provided that the Revisional Authority may pass an order under sub-

section (1) on any point which has not been raised and decided in an appealreferred to in clause (a) of sub-section (2), before the expiry of a period of oneyear from the date of the order in such appeal or before the expiry of a periodof three years referred to in clause (b) of that sub-section, whichever is later.

(3) Every order passed in revision under sub-section (1) shall, subject tothe provisions of section 113 or section 117 or section 118, be final and bindingon the parties.

(4) If the said decision or order involves an issue on which the AppellateTribunal or the High Court has given its decision in some other proceedingsand an appeal to the High Court or the Supreme Court against such decisionof the Appellate Tribunal or the High Court is pending, the period spentbetween the date of the decision of the Appellate Tribunal and the date ofthe decision of the High Court or the date of the decision of the High Courtand the date of the decision of the Supreme Court shall be excluded incomputing the period of limitation referred to in clause (b) of sub-section (2)where proceedings for revision have been initiated by way of issue of a noticeunder this section.

(5) Where the issuance of an order under sub-section (1) is stayed bythe order of a court or Appellate Tribunal, the period of such stay shall beexcluded in computing the period of limitation referred to in clause (b) ofsub-section (2).

(6) For the purposes of this section, the term,––(i) “record” shall include all records relating to any proceedings

under this Act available at the time of examination by the RevisionalAuthority ;

(ii) “decision” shall include intimation given by any officer lower inrank than the Revisional Authority.

Powers ofRevisionalAuthority.

¦ÉÉMÉ +É`ö--94-10


109. (1) Subject to the provisions of this Chapter, the Goods andServices Tax Tribunal constituted under the Central Goods and ServicesTax Act shall be the Appellate Tribunal for hearing appeals against the orderspassed by the Appellate Authority or the Revisional Authority under this Act.

(2) The constitution and jurisdiction of the State Bench and the AreaBenches located in the State shall be in accordance with the provisions ofsection 109 of the Central Goods and Services Tax Act or the rules madethereunder.

110. The qualifications, appointment, salary and allowances, terms ofoffice, resignation and removal of the President and Members of the StateBench and Area Benches shall be in accordance with the provisions of section110 of the Central Goods and Services Tax Act.

111. (1) The Appellate Tribunal shall not, while disposing of anyproceedings before it or an appeal before it, be bound by the procedure laiddown in the Code of Civil Procedure, 1908, but shall be guided by theprinciples of natural justice and subject to the other provisions of this Actand the rules made thereunder, the Appellate Tribunal shall have power toregulate its own procedure.

(2) The Appellate Tribunal shall, for the purposes of discharging itsfunctions under this Act, have the same powers as are vested in a civil courtunder the Code of Civil Procedure, 1908, while trying a suit in respect of thefollowing matters, namely :—

(a) summoning and enforcing the attendance of any person andexamining him on oath ;

(b) requiring the discovery and production of documents ;(c) receiving evidence on affidavits ;(d) subject to the provisions of sections 123 and 124 of the Indian

Evidence Act, 1872, requisitioning any public record or document or acopy of such record or document from any office ;

(e) issuing commissions for the examination of witnesses ordocuments ;

(f) dismissing a representation for default or deciding it ex-parte ;(g) setting aside any order of dismissal of any representation for

default or any order passed by it ex-parte ; and(h) any other matter which may be prescribed.

(3) Any order made by the Appellate Tribunal may be enforced by it inthe same manner as if it were a decree made by a court in a suit pendingtherein, and it shall be lawful for the Appellate Tribunal to send for executionof its orders to the court within the local limits of whose jurisdiction,—

(a) in the case of an order against a company, the registered officeof the company is situated ; or

(b) in the case of an order against any other person, the personconcerned voluntarily resides or carries on business or personally worksfor gain.

AppellateTribunal

andBenchesthereof.

Presidentand

Memberso f

AppellateTribunal,

theirqualifi-cation,

appoint-ment,

conditionsof service,

etc.

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(4) All proceedings before the Appellate Tribunal shall be deemed to bejudicial proceedings within the meaning of sections 193 and 228, and for thepurposes of section 196 of the Indian Penal Code, and the Appellate Tribunalshall be deemed to be civil court for the purposes of section 195 and ChapterXXVI of the Code of Criminal Procedure, 1973.

112. (1) Any person aggrieved by an order passed against him undersection 107 or section 108 of this Act or the Central Goods and Services TaxAct may appeal to the Appellate Tribunal against such order within threemonths from the date on which the order sought to be appealed against iscommunicated to the person preferring the appeal.

(2) The Appellate Tribunal may, in its discretion, refuse to admit anysuch appeal where the tax or input tax credit involved or the difference intax or input tax credit involved or the amount of fine, fee or penaltydetermined by such order, does not exceed fifty thousand rupees.

(3) The Commissioner may, on his own motion, or upon request fromthe Commissioner of central tax, call for and examine the record of any orderpassed by the Appellate Authority or the Revisional Authority under thisAct or under the Central Goods and Services Tax Act for the purpose ofsatisfying himself as to the legality or propriety of the said order and may, byorder, direct any officer subordinate to him to apply to the Appellate Tribunalwithin six months from the date on which the said order has been passed fordetermination of such points arising out of the said order as may be specifiedby the Commissioner in his order.

(4) Where in pursuance of an order under sub-section (3) the authorisedofficer makes an application to the Appellate Tribunal, such application shallbe dealt with by the Appellate Tribunal as if it were an appeal made againstthe order under sub-section (11) of section 107 or under sub-section (1) ofsection 108 and the provisions of this Act shall apply to such application, asthey apply in relation to appeals filed under sub-section (1).

(5) On receipt of notice that an appeal has been preferred under thissection, the party against whom the appeal has been preferred may,notwithstanding that he may not have appealed against such order or anypart thereof, file, within forty-five days of the receipt of notice, a memorandumof cross-objections, verified in the prescribed manner, against any part of theorder appealed against and such memorandum shall be disposed of by theAppellate Tribunal, as if it were an appeal presented within the time specifiedin sub-section (1).

(6) The Appellate Tribunal may admit an appeal within three monthsafter the expiry of the period referred to in sub-section (1), or permit thefiling of a memorandum of cross-objections within forty-five days after theexpiry of the period referred to in sub-section (5), if it is satisfied that therewas sufficient cause for not presenting it within that period.

(7) An appeal to the Appellate Tribunal shall be in such form, verifiedin such manner and shall be accompanied by such fee, as may be prescribed.

(8) No appeal shall be filed under sub-section (1), unless the appellanthas paid––

(a) in full, such part of the amount of tax, interest, fine, fee andpenalty arising from the impugned order, as is admitted by him, and

(b) a sum equal to twenty per cent. of the remaining amount of taxin dispute, in addition to the amount paid under sub-section (6) of the

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section 107, arising from the said order, in relation to which the appealhas been filed.(9) Where the appellant has paid the amount as per sub-section (8), the

recovery proceedings for the balance amount shall be deemed to be stayedtill the disposal of the appeal.

(10) Every application made before the Appellate Tribunal, —(a) in an appeal for rectification of error or for any other purpose ;

or(b) for restoration of an appeal or an application, shall be

accompanied by such fees as may be prescribed.

113. (1) The Appellate Tribunal may, after giving the parties to theappeal an opportunity of being heard, pass such orders thereon as it thinksfit, confirming, modifying or annulling the decision or order appealed againstor may refer the case back to the Appellate Authority, or the RevisionalAuthority or to the original adjudicating authority, with such directions as itmay think fit, for a fresh adjudication or decision after taking additionalevidence, if necessary.

(2) The Appellate Tribunal may, if sufficient cause is shown, at any stageof hearing of an appeal, grant time to the parties or any of them and adjournthe hearing of the appeal for reasons to be recorded in writing :

Provided that no such adjournment shall be granted more than threetimes to a party during hearing of the appeal.

(3) The Appellate Tribunal may amend any order passed by it undersub-section (1) so as to rectify any error apparent on the face of the record, ifsuch error is noticed by it on its own accord, or is brought to its notice by theCommissioner or the Commissioner of central tax or the other party to theappeal within a period of three months from the date of the order :

Provided that no amendment which has the effect of enhancing anassessment or reducing a refund or input tax credit or otherwise increasingthe liability of the other party, shall be made under this sub-section, unlessthe party has been given an opportunity of being heard.

(4) The Appellate Tribunal shall, as far as possible, hear and decideevery appeal within a period of one year from the date on which it is filed.

(5) The Appellate Tribunal shall send a copy of every order passed underthis section to the Appellate Authority or the Revisional Authority, or theoriginal adjudicating authority, as the case may be, the appellant and theCommissioner or the jurisdictional Commissioner of central tax.

(6) Save as provided in section 117 or section 118, orders passed by theAppellate Tribunal on an appeal shall be final and binding on the parties.

114. The State President shall exercise such financial and administrativepowers over the State Bench and Area Benches of the Appellate Tribunal ina State, as may be prescribed :

Provided that the State President shall have the authority to delegatesuch of his financial and administrative powers as he may think fit to anyother Member or any officer of the State Bench or Area Benches, subject tothe condition that such Member or officer shall, while exercising suchdelegated powers, continue to act under the direction, control and supervisionof the State President.

Orders ofAppellateTribunal.

Financialand

admini-strative

powers ofState

President.


115. Where an amount paid by the appellant under sub-section (6) ofsection 107 or sub-section (8) of section 112 is required to be refundedconsequent to any order of the Appellate Authority or of the AppellateTribunal, interest at the rate specified under section 56 shall be payable inrespect of such refund from the date of payment of the amount till the date ofrefund of such amount.

116. (1) Any person who is entitled or required to appear before anofficer appointed under this Act, or the Appellate Authority or the AppellateTribunal in connection with any proceedings under this Act, may, otherwisethan when required under this Act to appear personally for examination onoath or affirmation, subject to the other provisions of this section, appear byan authorised representative.

(2) For the purposes of this Act, the expression “authorised representative”shall mean a person authorised by the person referred to in sub-section (1) toappear on his behalf, being —

(a) his relative or regular employee ; or(b) an advocate who is entitled to practice in any court in India, and

who has not been debarred from practicing before any court in India ; or(c) any chartered accountant, a cost accountant or a company

secretary, who holds a certificate of practice and who has not beendebarred from practice ; or

(d) a retired officer of the Commercial Tax Department of any StateGovernment or Union territory or of the Board who, during his serviceunder the Government, had worked in a post not below the rank thanthat of a Group-B Gazetted officer for a period of not less than two years :

Provided that such officer shall not be entitled to appear before anyproceedings under this Act for a period of one year from the date of hisretirement or resignation ; or

(e) any person who has been authorised to act as a goods and servicestax practitioner on behalf of the concerned registered person.

(3) No person, —(a) who has been dismissed or removed from Government service ;

or(b) who is convicted of an offence connected with any proceedings

under this Act, the Central Goods and Services Tax Act, the IntegratedGoods and Services Tax Act or the Union Territory Goods and ServicesTax Act, or under the existing law or under any of the Acts passed by aState Legislature dealing with the imposition of taxes on sale of goodsor supply of goods or services or both ; or

(c) who is found guilty of misconduct by the prescribed authority ;(d) who has been adjudged as an insolvent,

shall be qualified to represent any person under sub-section (1)––(i) for all times in case of persons referred to in clauses (a), (b) and

(c) ; and(ii) for the period during which the insolvency continues in the case

of a person referred to in clause (d).

(4) Any person who has been disqualified under the provisions of theCentral Goods and Services Tax Act or the Goods and Services Tax Act ofany other State or the Union Territory Goods and Services Tax Act shall bedeemed to be disqualified under this Act.

Interest onrefund ofamountpaid foradmissionof appeal.

Appearancebyauthorisedrepre-sentative.


117. (1) Any person aggrieved by any order passed by the State Benchor Area Benches of the Appellate Tribunal may file an appeal to the HighCourt and the High Court may admit such appeal, if it is satisfied that thecase involves a substantial question of law.

(2) An appeal under sub-section (1) shall be filed within a period of onehundred and eighty days from the date on which the order appealed againstis received by the aggrieved person and it shall be in such form, verified insuch manners may be prescribed :

Provided that the High Court may entertain an appeal after the expiryof the said period if it is satisfied that there was sufficient cause for not filingit within such period.

(3) Where the High Court is satisfied that a substantial question of lawis involved in any case, it shall formulate that question and the appeal shallbe heard only on the question so formulated, and the respondents shall, atthe hearing of the appeal, be allowed to argue that the case does not involvesuch question :

Provided that nothing in this sub-section shall be deemed to take awayor abridge the power of the court to hear, for reasons to be recorded, theappeal on any other substantial question of law not formulated by it, if it issatisfied that the case involves such question.

(4) The High Court shall decide the question of law so formulated anddeliver such judgment thereon containing the grounds on which such decisionis founded and may award such cost as it deems fit.

(5) The High Court may determine any issue which–(a) has not been determined by the State Bench or Area Benches ;

or(b) has been wrongly determined by the State Bench or Area

Benches, by reason of a decision on such question of law as herein referredto in sub-section (3).(6) Where an appeal has been filed before the High Court, it shall be

heard by a Bench of not less than two Judges of the High Court, and shall bedecided in accordance with the opinion of such Judges or of the majority, ifany, of such Judges.

(7) Where there is no such majority, the Judges shall state the point oflaw upon which they differ and the case shall, then, be heard upon that pointonly, by one or more of the other Judges of the High Court and such pointshall be decided according to the opinion of the majority of the Judges whohave heard the case including those who first heard it.

(8) Where the High Court delivers a judgment in an appeal filed beforeit under this section, effect shall be given to such judgment by either side onthe basis of a certified copy of the judgment.

(9) Save as otherwise provided in this Act, the provisions of the Code ofCivil Procedure, 1908, relating to appeals to the High Court shall, as far asmay be, apply in the case of appeals under this section.

118. (1) An appeal shall lie to the Supreme Court-(a) from any order passed by the National Bench or Regional Benches

of the Appellate Tribunal ; or(b) from any judgment or order passed by the High Court in an appeal

made under section 117 in any case which, on its own motion or on anapplication made by or on behalf of the party aggrieved, immediatelyafter passing of the judgment or order, the High Court certifies to be afit one for appeal to the Supreme Court.

Appeal toHi gh

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(2) The provisions of the Code of Civil Procedure, 1908, relating toappeals to the Supreme Court shall, so far as may be, apply in the case ofappeals under this section as they apply in the case of appeals from decreesof a High Court.

(3) Where the judgment of the High Court is varied or reversed in theappeal, effect shall be given to the order of the Supreme Court in the mannerprovided in section 117 in the case of a judgment of the High Court.

119. Notwithstanding that an appeal has been preferred to the HighCourt or the Supreme Court, sums due to the Government as a result of anorder passed by the National or Regional Benches of the Appellate Tribunalunder sub-section (1) of section 113 or an order passed by the State Bench orArea Benches of the Appellate Tribunal under sub-section (1) of section 113or an order passed by the High Court under section 117, as the case may be,shall be payable in accordance with the order so passed.

120. (1) The Commissioner may, on the recommendations of the Council,from time to time, issue orders or instructions or directions fixing suchmonetary limits, as he may deem fit, for the purposes of regulating the filingof appeal or application by the officer of the State tax under the provisions ofthis Chapter.

(2) Where, in pursuance of the orders or instructions or directions issuedunder sub-section (1), the officer of the State tax has not filed an appeal orapplication against any decision or order passed under the provisions of thisAct, it shall not preclude such officer of the State tax from filing appeal orapplication in any other case involving the same or similar issues or questionsof law.

(3) Notwithstanding the fact that no appeal or application has been filedby the officer of the State tax pursuant to the orders or instructions ordirections issued under sub-section (1), no person, being a party in appeal orapplication shall contend that the officer of the State tax has acquiesced inthe decision on the disputed issue by not filing an appeal or application.

(4) The Appellate Tribunal or court hearing such appeal or applicationshall have regard to the circumstances under which appeal or applicationwas not filed by the officer of the State tax in pursuance of the orders orinstructions or directions issued under sub-section (1).

121. Notwithstanding anything to the contrary in any provisions ofthis Act, no appeal shall lie against any decision taken or order passed by anofficer of State tax if such decision taken or order passed relates to any oneor more of the following matters, namely :–

(a) an order of the Commissioner or other authority empowered todirect transfer of proceedings from one officer to another officer ; or

(b) an order pertaining to the seizure or retention of books of account,register and other documents ; or

(c) an order sanctioning prosecution under this Act ; or(d) an order passed under section 80.

5 of1908.

Sums dueto be paidnotwith-standingappeal, etc.

Appeal notto be filedin certaincases.

Non-appealabledecisionsand orders.


CHAPTER XIXOFFENCES AND PENALTIES

122. (1) Where a taxable person who––

(i) supplies any goods or services or both without issue of any invoiceor issues an incorrect or false invoice with regard to any such supply ;

(ii) issues any invoice or bill without supply of goods or services orboth in violation of the provisions of this Act or the rules madethereunder ;

(iii) collects any amount as tax but fails to pay the same to theGovernment beyond a period of three months from the date on whichsuch payment becomes due ;

(iv) collects any tax in contravention of the provisions of this Actbut fails to pay the same to the Government beyond a period of threemonths from the date on which such payment becomes due ;

(v) fails to deduct the tax in accordance with the provisions of sub-section (1) of section 51, or deducts an amount which is less than theamount required to be deducted under the said sub-section, or where hefails to pay to the Government under sub-section (2) thereof, the amountdeducted as tax ;

(vi) fails to collect tax in accordance with the provisions of sub-section (1) of section 52, or collects an amount which is less than theamount required to be collected under the said sub-section or where hefails to pay to the Government the amount collected as tax under sub-section (3) of section 52 ;

(vii) takes or utilizes input tax credit without actual receipt of goodsor services or both either fully or partially, in contravention of theprovisions of this Act or the rules made thereunder ;

(viii) fraudulently obtains refund of tax under this Act ;(ix) takes or distributes input tax credit in contravention of section

20, or the rules made thereunder ;(x) falsifies or substitutes financial records or produces fake accounts

or documents or furnishes any false information or return with anintention to evade payment of tax due under this Act ;

(xi) is liable to be registered under this Act but fails to obtainregistration ;

(xii) furnishes any false information with regard to registrationparticulars, either at the time of applying for registration, orsubsequently ;

(xiii) obstructs or prevents any officer in discharge of his dutiesunder this Act ;

(xiv) transports any taxable goods without the cover of documentsas may be specified in this behalf ;

(xv) suppresses his turnover leading to evasion of tax under thisAct ;

(xvi) fails to keep, maintain or retain books of account and otherdocuments in accordance with the provisions of this Act or the rulesmade thereunder ;

Penalty forcertain

offences.


(xvii) fails to furnish information or documents called for by an officerin accordance with the provisions of this Act or the rules made thereunderor furnishes false information or documents during any proceedingsunder this Act ;

(xviii) supplies, transports or stores any goods which he has reasonsto believe are liable to confiscation under this Act ;

(xix) issues any invoice or document by using the registration numberof another registered person ;

(xx) tampers with, or destroys any material evidence or documents ;(xxi) disposes off or tampers with any goods that have been detained,

seized, or attached under this Act,shall be liable to pay a penalty of ten thousand rupees or an amountequivalent to the tax evaded or the tax not deducted under section 51 orshort deducted or deducted but not paid to the Government or tax notcollected under section 52 or short collected or collected but not paid to theGovernment or input tax credit availed of or passed on or distributedirregularly, or the refund claimed fraudulently, whichever is higher.

(2) Any registered person who supplies any goods or services or both onwhich any tax has not been paid or short-paid or erroneously refunded, orwhere the input tax credit has been wrongly availed or utilized,-

(a) for any reason, other than the reason of fraud or any willfulmisstatement or suppression of facts to evade tax, shall be liable to apenalty of ten thousand rupees or ten per cent. of the tax due from suchperson, whichever is higher ;

(b) for reason of fraud or any willful misstatement or suppressionof facts to evade tax, shall be liable to a penalty equal to ten thousandrupees or the tax due from such person, whichever is higher.(3) Any person who––

(a) aids or abets any of the offences specified in clauses (i) to (xxi) ofsub-section (1) ;

(b) acquires possession of, or in any way concerns himself intransporting, removing, depositing, keeping, concealing, supplying, orpurchasing or in any other manner deals with any goods which he knowsor has reasons to believe are liable to confiscation under this Act or therules made thereunder ;

(c) receives or is in any way concerned with the supply of, or in anyother manner deals with any supply of services which he knows or hasreasons to believe are in contravention of any provisions of this Act orthe rules made thereunder ;

(d) fails to appear before the officer of State tax, when issued with asummon for appearance to give evidence or produce a document in aninquiry ;

(e) fails to issue invoice in accordance with the provisions of thisAct or the rules made thereunder or fails to account for an invoice in hisbooks of account,

shall be liable to a penalty which may extend to twenty five thousand rupees.

¦ÉÉMÉ +É`ö--94-11


123. If a person who is required to furnish an information return undersection 150 fails to do so within the period specified in the notice issuedunder sub-section (3) thereof, the proper officer may direct, that such personshall be liable to pay a penalty of one hundred rupees for each day of theperiod during which the failure to furnish such return continues :

Provided that the penalty imposed under this section shall not exceedfive thousand rupees.

124. If any person required to furnish any information or return undersection 151,—

(a) without reasonable cause fails to furnish such information orreturn as may be required under that section, or

(b) wilfully furnishes or causes to furnish any information or returnwhich he knows to be false,

he shall be punishable with a fine which may extend to ten thousand rupeesand in case of a continuing offence to a further fine which may extend to onehundred rupees for each day after the first day during which the offencecontinues subject to a maximum limit of twenty-five thousand rupees.

125. Any person, who contravenes any of the provisions of this Act orany rules made thereunder for which no penalty is separately provided forin this Act, shall be liable to a penalty which may extend to twenty fivethousand rupees.

126. (1) No officer under this Act shall impose any penalty for minorbreaches of tax regulations or procedural requirements and in particular,any omission or mistake in documentation which is easily rectifiable andmade without fraudulent intent or gross negligence.

Explanation.––For the purpose of this sub-section,––(a) a breach shall be considered a ‘minor breach’ if the amount of tax

involved is less than five thousand rupees ;(b) an omission or mistake in documentation shall be considered to

be easily rectifiable if the same is an error apparent on the face of record.(2) The penalty imposed under this Act shall depend on the facts and

circumstances of each case and shall commensurate with the degree andseverity of the breach.

(3) No penalty shall be imposed on any person without giving him anopportunity of being heard.

(4) The officer under this Act shall while imposing penalty in an orderfor a breach of any law, regulation or procedural requirement, specify thenature of the breach and the applicable law, regulation or procedure underwhich the amount of penalty for the breach has been specified.

(5) When a person voluntarily discloses to an officer under this Act thecircumstances of a breach of the tax law, regulation or procedural requirementprior to the discovery of the breach by the officer under this Act, the properofficer may consider this fact as a mitigating factor when quantifying a penaltyfor that person.

(6) The provisions of this section shall not apply in such cases wherethe penalty specified under this Act is either a fixed sum or expressed as afixed percentage.

127. Where the proper officer is of the view that a person is liable to apenalty and the same is not covered under any proceedings under section 62or section 63 or section 64 or section 73 or section 74 or section 129 or section130, he may issue an order levying such penalty after giving a reasonableopportunity of being heard to such person.

Penalty forfailure to

furnishinformation

return.

Generalpenalty.

Generaldisciplinesrelated to

penalty.

Fine forfailure to

furnishstatistics.

Power toimpose

penalty incertain

cases.


128. The Government may, by notification, waive in part or full, anypenalty referred to in section 122 or section 123 or section 125 or any late feereferred to in section 47 for such class of taxpayers and under such mitigatingcircumstances as may be specified therein on the recommendations of theCouncil.

129. (1) Notwithstanding anything contained in this Act, where anyperson transports any goods or stores any goods while they are in transit incontravention of the provisions of this Act or the rules made thereunder, allsuch goods and conveyance used as a means of transport for carrying thesaid goods and documents relating to such goods and conveyance shall beliable to detention or seizure and after detention or seizure, shall bereleased,—

(a) on payment of the applicable tax and penalty equal to onehundred per cent. of the tax payable on such goods and, in case ofexempted goods, on payment of an amount equal to two per cent. of thevalue of goods or twenty five thousand rupees, whichever is less, wherethe owner of the goods comes forward for payment of such tax andpenalty ;

(b) on payment of the applicable tax and penalty equal to the fiftyper cent. of the value of the goods reduced by the tax amount paid thereonand, in case of exempted goods, on payment of an amount equal to fiveper cent. of the value of goods or twenty five thousand rupees, whicheveris less, where the owner of the goods does not come forward for paymentof such tax and penalty ;

(c) upon furnishing a security equivalent to the amount payableunder clause (a) or clause (b) in such form and manner as may beprescribed :

Provided that no such goods or conveyance shall be detained orseized without serving an order of detention or seizure on the persontransporting the goods.(2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis,

apply for detention and seizure of goods and conveyances.(3) The proper officer detaining or seizing goods or conveyances shall

issue a notice specifying the tax and penalty payable and thereafter, pass anorder for payment of tax and penalty under clause (a) or clause (b) orclause (c).

(4) No tax, interest or penalty shall be determined under sub-section(3) without giving the person concerned an opportunity of being heard.

(5) On payment of amount referred in sub-section (1), all proceedings inrespect of the notice specified in sub-section (3) shall be deemed to beconcluded.

(6) Where the person transporting any goods or the owner of the goodsfails to pay the amount of tax and penalty as provided in sub-section (1) withinseven days of such detention or seizure, further proceedings shall be initiatedin accordance with the provisions of section 130 :

Provided that where the detained or seized goods are perishable orhazardous in nature or are likely to depreciate in value with passage of time,the said period of seven days may be reduced by the proper officer.

Power towaivepenalty orfee or both.

Detention,seizureandrelease ofgoods andconveyancesin transit.

¦ÉÉMÉ +É`ö--94-11+


130. (1) Notwithstanding anything contained in this Act, if any person—

(i) supplies or receives any goods in contravention of any of theprovisions of this Act or the rules made thereunder with intent to evadepayment of tax ; or

(ii) does not account for any goods on which he is liable to pay taxunder this Act ; or

(iii) supplies any goods liable to tax under this Act without havingapplied for registration ; or

(iv) contravenes any of the provisions of this Act or the rules madethereunder with intent to evade payment of tax ; or

(v) uses any conveyance as a means of transport for carriage of goodsin contravention of the provisions of this Act or the rules madethereunder unless the owner of the conveyance proves that it was soused without the knowledge or connivance of the owner himself, hisagent, if any, and the person in charge of the conveyance,

then, all such goods or conveyances shall be liable to confiscation and theperson shall be liable to penalty under section 122.

(2) Whenever confiscation of any goods or conveyance is authorised bythis Act, the officer adjudging it shall give to the owner of the goods an optionto pay in lieu of confiscation, such fine as the said officer thinks fit :

Provided that such fine leviable shall not exceed the market value of thegoods confiscated, less the tax chargeable thereon :

Provided further that the aggregate of such fine and penalty leviableshall not be less than the amount of penalty leviable under sub-section (1) ofsection 129 :

Provided also that where any such conveyance is used for the carriageof the goods or passengers for hire, the owner of the conveyance shall begiven an option to pay in lieu of the confiscation of the conveyance a fineequal to the tax payable on the goods being transported thereon.

(3) Where any fine in lieu of confiscation of goods or conveyance isimposed under sub-section (2), the owner of such goods or conveyance or theperson referred to in sub-section (1), shall, in addition, be liable to any tax,penalty and charges payable in respect of such goods or conveyance.

(4) No order for confiscation of goods or conveyance or for imposition ofpenalty shall be issued without giving the person an opportunity of beingheard.

(5) Where any goods or conveyance are confiscated under this Act, thetitle of such goods or conveyance shall thereupon vest in the Government.

(6) The proper officer adjudging confiscation shall take and holdpossession of the things confiscated and every officer of Police, on therequisition of such proper officer, shall assist him in taking and holding suchpossession.

(7) The proper officer may, after satisfying himself that the confiscatedgoods or conveyance are not required in any other proceedings under thisAct and after giving reasonable time not exceeding three months to pay finein lieu of confiscation, dispose of such goods or conveyance and deposit thesale proceeds thereof with the Government.

Confiscationof goods or

conveyancesand levy of

penalty.


131. Without prejudice to the provisions contained in the Code ofCriminal Procedure, 1973, no confiscation made or penalty imposed underthe provisions of this Act or the rules made thereunder shall prevent theinfliction of any other punishment to which the person affected thereby isliable under the provisions of this Act or under any other law for the timebeing in force.

132. (1) Whoever commits any of the following offences, namely :—

(a) supplies any goods or services or both without issue of anyinvoice, in violation of the provisions of this Act or the rules madethereunder, with the intention to evade tax ;

(b) issues any invoice or bill without supply of goods or services orboth in violation of the provisions of this Act, or the rules madethereunder leading to wrongful availment or utilisation of input tax creditor refund of tax ;

(c) avails input tax credit using such invoice or bill referred to inclause (b) ;

(d) collects any amount as tax but fails to pay the same to theGovernment beyond a period of three months from the date on whichsuch payment becomes due ;

(e) evades tax, fraudulently avails input tax credit or fraudulentlyobtains refund and where such offence is not covered under clauses (a)to (d) ;

(f) falsifies or substitutes financial records or produces fake accountsor documents or furnishes any false information with an intention toevade payment of tax due under this Act ;

(g) obstructs or prevents any officer in the discharge of his dutiesunder this Act ;

(h) acquires possession of, or in any way concerns himself intransporting, removing, depositing, keeping, concealing, supplying,purchasing or in any other manner deals with, any goods which he knowsor has reasons to believe are liable to confiscation under this Act or therules made thereunder ;

(i) receives or is in any way concerned with the supply of, or in anyother manner deals with any supply of services which he knows or hasreasons to believe are in contravention of any provisions of this Act orthe rules made thereunder ;

(j) tampers with or destroys any material evidence or documents ;(k) fails to supply any information which he is required to supply

under this Act or the rules made thereunder or (unless with a reasonablebelief, the burden of proving which shall be upon him, that the informationsupplied by him is true) supplies false information ; or

(l) attempts to commit, or abets the commission of any of the offencesmentioned in clauses (a) to (k) of this section,

shall be punishable––(i) in cases where the amount of tax evaded or the amount of input

tax credit wrongly availed or utilised or the amount of refund wronglytaken exceeds five hundred lakh rupees, with imprisonment for a termwhich may extend to five years and with fine ;

2 of1974.

Confisca-tion orpenalty nott ointerferewith otherpunish-ments.

Punish-ment forcertainoffences.


(ii) in cases where the amount of tax evaded or the amount of inputtax credit wrongly availed or utilised or the amount of refund wronglytaken exceeds two hundred lakh rupees but does not exceed five hundredlakh rupees, with imprisonment for a term which may extend to threeyears and with fine ;

(iii) in the case of any other offence where the amount of tax evadedor the amount of input tax credit wrongly availed or utilised or theamount of refund wrongly taken exceeds one hundred lakh rupees butdoes not exceed two hundred lakh rupees, with imprisonment for a termwhich may extend to one year and with fine ;

(iv) in cases where he commits or abets the commission of an offencespecified in clause (f) or clause (g) or clause (j), he shall be punishablewith imprisonment for a term which may extend to six months or withfine or with both.(2) Where any person convicted of an offence under this section is again

convicted of an offence under this section, then, he shall be punishable forthe second and for every subsequent offence with imprisonment for a termwhich may extend to five years and with fine.

(3) The imprisonment referred to in clauses (i), (ii) and (iii) of sub-section(1) and sub-section (2) shall, in the absence of special and adequate reasonsto the contrary to be recorded in the judgment of the Court, be for a term notless than six months.

(4) Notwithstanding anything contained in the Code of CriminalProcedure, 1973, all offences under this Act, except the offences referred toin sub-section (5) shall be non-cognizable and bailable.

(5) The offences specified in clause (a) or clause (b) or clause (c) or clause(d) of sub-section (1) and punishable under clause (i) of that sub-section shallbe cognizable and non-bailable.

(6) A person shall not be prosecuted for any offence under this sectionexcept with the previous sanction of the Commissioner.

Explanation. - For the purposes of this section, the term “tax” shallinclude the amount of tax evaded or the amount of input tax credit wronglyavailed or utilised or refund wrongly taken under the provisions of this Act,the Central Goods and Services Tax Act, the Integrated Goods and ServicesTax Act, and cess levied under the Goods and Services Tax (Compensation toStates) Act.

133.(1) Where any person engaged in connection with the collection ofstatistics under section 151 or compilation or computerisation thereof or ifany officer of State tax having access to information specified under sub-section (1) of section 150, or if any person engaged in connection with theprovision of service on the common portal or the agent of common portal,wilfully discloses any information or the contents of any return furnishedunder this Act or rules made thereunder otherwise than in execution of hisduties under the said sections or for the purposes of prosecution for an offenceunder this Act or under any other Act for the time being in force, he shall bepunishable with imprisonment for a term which may extend to six months orwith fine which may extend to twenty five thousand rupees, or with both.

(2) Any person—(a) who is a Government servant shall not be prosecuted for any

offence under this section except with the previous sanction of theGovernment ;

Liability ofofficers

and certainother

persons.

2 of1974.


(b) who is not a Government servant shall not be prosecuted for anyoffence under this section except with the previous sanction of theCommissioner.

134. No court shall take cognizance of any offence punishable underthis Act or the rules made thereunder except with the previous sanction ofthe Commissioner, and no court inferior to that of a Magistrate of the FirstClass, shall try any such offence.

135. In any prosecution for an offence under this Act which requires aculpable mental state on the part of the accused, the court shall presume theexistence of such mental state but it shall be a defence for the accused toprove the fact that he had no such mental state with respect to the act chargedas an offence in that prosecution.

Explanation.—For the purposes of this section,—(i) the expression “culpable mental state” includes intention, motive,

knowledge of a fact, and belief in, or reason to believe, a fact ;(ii) a fact is said to be proved only when the court believes it to exist

beyond reasonable doubt and not merely when its existence is establishedby a preponderance of probability.

136. A statement made and signed by a person on appearance inresponse to any summons issued under section 70 during the course of anyinquiry or proceedings under this Act shall be relevant, for the purpose ofproving, in any prosecution for an offence under this Act, the truth of thefacts which it contains,–

(a) when the person who made the statement is dead or cannot befound, or is incapable of giving evidence, or is kept out of the way by theadverse party, or whose presence cannot be obtained without an amountof delay or expense which, under the circumstances of the case, the courtconsiders unreasonable ; or

(b) when the person who made the statement is examined as awitness in the case before the court and the court is of the opinion that,having regard to the circumstances of the case, the statement should beadmitted in evidence in the interest of justice.

137. (1) Where an offence committed by a person under this Act is acompany, every person who, at the time the offence was committed was incharge of, and was responsible to, the company for the conduct of business ofthe company, as well as the company, shall be deemed to be guilty of theoffence and shall be liable to be proceeded against and punished accordingly.

(2) Notwithstanding anything contained in sub-section (1), where anoffence under this Act has been committed by a company and it is provedthat the offence has been committed with the consent or connivance of, or isattributable to any negligence on the part of, any director, manager, secretaryor other officer of the company, such director, manager, secretary or otherofficer shall also be deemed to be guilty of that offence and shall be liable tobe proceeded against and punished accordingly.

(3) Where an offence under this Act has been committed by a taxableperson being a partnership firm or a Limited Liability Partnership or a HinduUndivided Family or a trust, the partner or karta or managing trustee shallbe deemed to be guilty of that offence and shall be liable to be proceededagainst and punished accordingly and the provisions of sub-section (2) shallmutatis mutandis apply to such persons.

Cognizanceof offences.

Presump-tion ofculpablementalstate.

Relevancyo fstatementsundercertaincircumstances.

OffencesbyCompanies.


(4) Nothing contained in this section shall render any such person liableto any punishment provided in this Act, if he proves that the offence wascommitted without his knowledge or that he had exercised all due diligenceto prevent the commission of such offence.

Explanation.––For the purposes of this section,—(i) “company” means a body corporate and includes a firm or other

association of individuals ; and(ii) “director”, in relation to a firm, means a partner in the firm.

138. (1) Any offence under this Act may, either before or after theinstitution of prosecution, be compounded by the Commissioner on payment,by the person accused of the offence, to the Central Government or the StateGovernment, as the case may be, of such compounding amount in such manneras may be prescribed :

Provided that nothing contained in this section shall apply to—(a) a person who has been allowed to compound once in respect of

any of the offences specified in clauses (a) to (f) of sub-section (1) of section132 and the offences specified in clause (l) which are relatable to offencesspecified in clauses (a) to (f) of the said sub-section ;

(b) a person who has been allowed to compound once in respect ofany offence, other than those in clause (a), under this Act or under theprovisions of any State Goods and Services Tax Act or the Central Goodsand Services Tax Act or the Union Territory Goods and Services TaxAct or the Integrated Goods and Services Tax Act in respect of suppliesof value exceeding one crore rupees ;

(c) a person who has been accused of committing an offence underthis Act which is also an offence under any other law for the time beingin force ;

(d) a person who has been convicted for an offence under this Actby a court ;

(e) a person who has been accused of committing an offence specifiedin clause (g) or clause (j) or clause(k) of sub-section (1) of section 132 ;and

(f) any other class of persons or offences as may be prescribed :Provided further that any compounding allowed under the

provisions of this section shall not affect the proceedings, if any, institutedunder any other law :

Provided also that compounding shall be allowed only after makingpayment of tax, interest and penalty involved in such offences.(2) The amount for compounding of offences under this section shall be

such as may be prescribed, subject to the minimum amount not being lessthan ten thousand rupees or fifty per cent. of the tax involved, whichever ishigher, and the maximum amount not being less than thirty thousand rupeesor one hundred and fifty per cent. of the tax, whichever is higher.

(3) On payment of such compounding amount as may be determined bythe Commissioner, no further proceedings shall be initiated under this Actagainst the accused person in respect of the same offence and any criminalproceedings, if already initiated in respect of the said offence, shall standabated.

Compoundingof offences.


CHAPTER XXTRANSITIONAL PROVISIONS

139. (1) On and from the appointed day, every person registered underany of the existing laws and having a valid Permanent Account Number shallbe issued a certificate of registration on provisional basis, subject to suchconditions and in such form and manner as may be prescribed, which unlessreplaced by a final certificate of registration under sub-section (2), shall beliable to be cancelled if the conditions so prescribed are not complied with.

(2) The final certificate of registration shall be granted in such formand manner and subject to such conditions as may be prescribed.

(3) The certificate of registration issued to a person under sub-section(1) shall be deemed to have not been issued if the said registration is cancelledin pursuance of an application filed by such person that he was not liable toregistration under section 22 or section 24.

140. (1) A registered person, other than a person opting to pay taxunder section 10, shall be entitled to take, in his electronic credit ledger,credit of the amount of Value Added Tax, and Entry Tax, if any, carried forwardin the return relating to the period ending with the day immediately precedingthe appointed day, furnished by him under the existing law in such manneras may be prescribed :

Provided that the registered person shall not be allowed to take creditin the following circumstances, namely : –

(i) where the said amount of credit is not admissible as input taxcredit under this Act ; or

(ii) where he has not furnished all the returns required under theexisting law for the period of six months immediately preceding theappointed date ; or

(iii) where the said amount of credit relates to units not entitled toclaim set-off under rule 79 of the Maharashtra Value Added TaxRules, 2005 :

Provided further that so much of the said credit as is attributableto any claim related to section 3, sub-section (3) of section 5, section 6,section 6A or sub-section (8) of section 8 of the Central Sales Tax Act,1956 which is not substantiated in the manner, and within the period,prescribed in rule 12 of the Central Sales Tax (Registration and Turnover)Rules, 1957 shall not be eligible to be credited to the electronic creditledger :

Provided also that an amount equivalent to the credit specified inthe second proviso shall be refunded under the existing law when thesaid claims are substantiated in the manner prescribed in rule 12 of theCentral Sales Tax (Registration and Turnover) Rules, 1957.(2) A registered person, other than a person opting to pay tax under

section 10, shall be entitled to take, in his electronic credit ledger, credit ofthe unavailed input tax credit in respect of capital goods, not carried forwardin a return, furnished under the existing law by him, for the period endingwith the day immediately preceding the appointed day in such manner asmay be prescribed :

Provided that the registered person shall not be allowed to take creditunless the said credit was admissible as input tax credit under the existinglaw and is also admissible as input tax credit under this Act.

Migrationof existingtax payers.

Transitionalarrangementsfor inputtax credit.

74 of1956.

¦ÉÉMÉ +É`ö--94-12


Explanation.––For the purposes of this section, the expression“unavailed input tax credit” means the amount that remains after subtractingthe amount of input tax credit already availed in respect of capital goods bythe taxable person under the existing law from the aggregate amount of inputtax credit to which the said person was entitled in respect of the said capitalgoods under the existing law.

(3) A registered person, who was not liable to be registered under theexisting law or who was engaged in the sale of exempted goods or tax freegoods, by whatever name called,or goods which have suffered tax at the firstpoint of their sale in the State and the subsequent sales of which are notsubject to tax in the State under the existing law but which are liable to taxunder this Act or where the person was entitled to the credit of input tax atthe time of sale of goods, if any, shall be entitled to take, in his electroniccredit ledger, credit of the value added tax and entry tax in respect of inputsheld in stock and inputs contained in semi-finished or finished goods held instock on the appointed day subject to the following conditions, namely :––

(i) such inputs or goods are used or intended to be used for makingtaxable supplies under this Act ;

(ii) the said registered person is eligible for input tax credit on suchinputs under this Act ;

(iii) the said registered person is in possession of invoice or otherprescribed documents evidencing payment of tax under the existing lawin respect of such inputs ; and

(iv) such invoices or other prescribed documents were issued notearlier than twelve months immediately preceding the appointed day :

Provided that where a registered person, other than a manufactureror a supplier of services, is not in possession of an invoice or any otherdocuments evidencing payment of tax in respect of inputs, then, suchregistered person shall, subject to such conditions, limitations andsafeguards as may be prescribed, including that the said taxable personshall pass on the benefit of such credit by way of reduced prices to therecipient, be allowed to take credit at such rate and in such manner asmay be prescribed.(4) A registered person, who was engaged in the sale of taxable goods as

well as exempted goods or tax free goods, by whatever name called, underthe existing law but which are liable to tax under this Act, shall be entitledto take, in his electronic credit ledger,-

(a) the amount of credit of the value added tax and entry tax, if any,carried forward in a return furnished under the existing law by him inaccordance with the provisions of sub-section (1) ; and

(b) the amount of credit of the value added tax and entry tax, if any,in respect of inputs held in stock and inputs contained in semi-finishedor finished goods held in stock on the appointed day, relating to suchexempted goods or tax free goods, by whatever name called, in accordancewith the provisions of sub-section (3).(5) A registered person shall be entitled to take, in his electronic credit

ledger, credit of value added tax and entry tax, if any, in respect of inputsreceived on or after the appointed day but the tax in respect of which hasbeen paid by the supplier under the existing law, subject to the conditionthat the invoice or any other tax paying document of the same was recordedin the books of account of such person within a period of thirty days from theappointed day :


Provided that the period of thirty days may, on sufficient cause beingshown, be extended by the Commissioner for a further period not exceedingthirty days :

Provided further that the said registered person shall furnish astatement, in such manner as may be prescribed, in respect of credit that hasbeen taken under this sub-section.

(6) A registered person, who was either paying tax at a fixed rate orpaying a fixed amount in lieu of the tax payable under the existing law shallbe entitled to take, in his electronic credit ledger, credit of value added taxin respect of inputs held in stock and inputs contained in semi-finished orfinished goods held in stock on the appointed day subject to the followingconditions, namely :––

(i) such inputs or goods are used or intended to be used for makingtaxable supplies under this Act ;

(ii) the said registered person is not paying tax under section 10 ;(iii) the said registered person is eligible for input tax credit on

such inputs under this Act ;(iv) the said registered person is in possession of invoice or other

prescribed documents evidencing payment of tax under the existing lawin respect of inputs ; and

(v) such invoices or other prescribed documents were issued notearlier than twelve months immediately preceding the appointed day.(7) The amount of credit under sub-sections (3), (4) and (6) shall be

calculated in such manner as may be prescribed.

141. (1) Where any inputs received at a place of business had beendespatched as such or despatched after being partially processed to ajobworker for further processing, testing, repair, reconditioning or any otherpurpose in accordance with the provisions of existing law prior to theappointed day and such inputs are returned to the said place on or after theappointed day, no tax shall be payable if such inputs, after completion of thejobwork or otherwise, are returned to the said place within six months fromthe appointed day :

Provided that the period of six months may, on sufficient cause beingshown, be extended by the Commissioner for a further period not exceedingtwo months :

Provided further that if such inputs are not returned within the periodspecified in this sub-section, the input tax credit shall be liable to be recoveredin accordance with the provisions of clause (a) of sub-section (8) of section142.

(2) Where any semi-finished goods had been despatched from the placeof business to any other premises for carrying out certain manufacturingprocesses in accordance with the provisions of existing law prior to theappointed day and such goods (hereafter in this sub-section referred to as“the said goods”) are returned to the said place on or after the appointedday, no tax shall be payable if the said goods, after undergoing manufacturingprocesses or otherwise, are returned to the said place within six monthsfrom the appointed day :


Provided further that if the said goods are not returned within a periodspecified in this sub-section, the input tax credit shall be liable to be recoveredin accordance with the provisions of clause (a) of sub-section (8) of section142 :

Transitionalprovisionsrelating tojobwork.

¦ÉÉMÉ +É`ö--94-12+


Provided also that the person despatching the goods may, in accordancewith the provisions of the existing law, transfer the said goods to the premisesof any registered person for the purpose of supplying therefrom on paymentof tax in India or without payment of tax for exports within the periodspecified in this sub-section.

(3) Where any goods had been despatched from the place of businesswithout payment of tax for carrying out tests or any other process, to anyother premises, whether registered or not, in accordance with the provisionsof existing law prior to the appointed day and such goods, are returned tothe said place of business on or after the appointed day, no tax shall be payableif the said goods, after undergoing tests or any other process, are returned tosuch place within six months from the appointed day :


Provided further that if the said goods are not returned within the periodspecified in this sub-section, the input tax credit shall be liable to be recoveredin accordance with the provisions of clause (a) of sub-section (8) of section142 :

Provided also that the person despatching the goods may, in accordancewith the provisions of the existing law, transfer the said goods from the saidother premises on payment of tax in India or without payment of tax forexports within the period specified in this sub-section.

(4) The tax under sub-sections (1), (2) and (3) shall not be payable, onlyif the person despatching the goods and the jobworker declare the details ofthe inputs or goods held in stock by the jobworker on behalf of the said personon the appointed day in such form and manner and within such time as maybe prescribed.

142. (1) Where any goods on which tax, if any, had been paid underthe existing law at the time of sale thereof, not being earlier than six monthsprior to the appointed day, are returned to any place of business on or afterthe appointed day, the registered person shall be eligible for refund of thetax paid under the existing law where such goods are returned by a person,other than a registered person, to the said place of business within a periodof six months from the appointed day and such goods are identifiable to thesatisfaction of the proper officer :

Provided that if the said goods are returned by a registered person, thereturn of such goods shall be deemed to be a supply.

(2) (a)where, in pursuance of a contract entered into prior to theappointed day, the price of any goods is revised upwards on or after theappointed day, the registered person who had sold such goods shall issue tothe recipient a supplementary invoice or debit note, containing suchparticulars as may be prescribed, within thirty days of such price revisionand for the purposes of this Act, such supplementary invoice or debit noteshall be deemed to have been issued in respect of an outward supply madeunder this Act ;

(b) where, in pursuance of a contract entered into prior to the appointedday, the price of any goods is revised downwards on or after the appointedday, the registered person who had sold such goods may issue to the recipienta credit note, containing such particulars as may be prescribed, within thirtydays of such price revision and for the purposes of this Act such credit noteshall be deemed to have been issued in respect of an outward supply madeunder this Act :

Miscella-neous

transitionalprovisions.


Provided that the registered person shall be allowed to reduce his taxliability on account of issue of the credit note only if the recipient of thecredit note has reduced his input tax credit corresponding to such reductionof tax liability.

(3) Every claim for refund filed by any person before, on or after theappointed day for refund of any amount of input tax credit, tax, interest orany other amount paid under the existing law, shall be disposed of inaccordance with the provisions of existing law and any amount eventuallyaccruing to him shall be refunded to him in cash in accordance with theprovisions of the said law :

Provided that where any claim for refund of the amount of input taxcredit is fully or partially rejected, the amount so rejected shall lapse :

Provided further that no refund shall be allowed of any amount of inputtax credit where the balance of the said amount as on the appointed day hasbeen carried forward under this Act.

(4) Every claim for refund filed after the appointed day for refund ofany tax paid under the existing law in respect of the goods exported beforeor after the appointed day, shall be disposed of in accordance with theprovisions of the existing law :

Provided that where any claim for refund of input tax credit is fully orpartially rejected, the amount so rejected shall lapse :

Provided further that no refund shall be allowed of any amount of inputtax credit where the balance of the said amount as on the appointed day hasbeen carried forward under this Act.

(5) Notwithstanding anything to the contrary contained in this Act, anyamount of input tax credit reversed prior to the appointed day shall not beadmissible as input tax credit under this Act.

(6) (a) every proceeding of appeal, revision, review or reference relatingto a claim for input tax credit initiated whether before, on or after theappointed day under the existing law shall be disposed of in accordance withthe provisions of the existing law, and any amount of credit found to beadmissible to the claimant shall be refunded to him in cash in accordancewith the provisions of the existing law, and the amount rejected, if any, shallnot be admissible as input tax credit under this Act :

Provided that no refund shall be allowed of any amount of input taxcredit where the balance of the said amount as on the appointed day hasbeen carried forward under this Act ;

(b) every proceeding of appeal, revision, review or reference relating torecovery of input tax credit initiated whether before, on or after the appointedday under the existing law shall be disposed of in accordance with theprovisions of the existing law, and if any amount of credit becomes recoverableas a result of such appeal, revision, review or reference, the same shall, unlessrecovered under the existing law, be recovered as an arrear of tax under thisAct and the amount so recovered shall not be admissible as input tax creditunder this Act.

(7) (a) every proceeding of appeal, revision, review or reference relatingto any output tax liability initiated whether before, on or after the appointedday under the existing law, shall be disposed of in accordance with theprovisions of the existing law, and if any amount becomes recoverable as aresult of such appeal, revision, review or reference, the same shall, unlessrecovered under the existing law, be recovered as an arrear of tax under this


Act and the amount so recovered shall not be admissible as input tax creditunder this Act.

(b) every proceeding of appeal, revision, review or reference relating toany output tax liability initiated whether before, on or after the appointedday under the existing law, shall be disposed of in accordance with theprovisions of the existing law, and any amount found to be admissible to theclaimant shall be refunded to him in cash in accordance with the provisionsof the existing law and the amount rejected, if any, shall not be admissible asinput tax credit under this Act.

(8) (a) where in pursuance of an assessment or adjudication proceedingsinstituted, whether before, on or after the appointed day under the existinglaw, any amount of tax, interest, fine or penalty becomes recoverable fromthe person, the same shall, unless recovered under the existing law, berecovered as an arrear of tax under this Act and the amount so recoveredshall not be admissible as input tax credit under this Act ;

(b) where in pursuance of an assessment or adjudication proceedingsinstituted, whether before, on or after the appointed day under the existinglaw, any amount of tax, interest, fine or penalty becomes refundable to thetaxable person, the same shall be refunded to him in cash under the said law,and the amount rejected, if any, shall not be admissible as input tax creditunder this Act.

(9) (a) where any return, furnished under the existing law, is revisedafter the appointed day and if, pursuant to such revision, any amount is foundto be recoverable or any amount of input tax credit is found to be inadmissible,the same shall, unless recovered under the existing law, be recovered as anarrear of tax under this Act and the amount so recovered shall not beadmissible as input tax credit under this Act ;

(b) where any return, furnished under the existing law, is revised afterthe appointed day but within the time limit specified for such revision underthe existing law and if, pursuant to such revision, any amount is found to berefundable or input tax credit is found to be admissible to any taxable person,the same shall be refunded to him in cash under the existing law, and theamount rejected, if any, shall not be admissible as input tax credit under thisAct.

(10) Save as otherwise provided in this Chapter, the goods or servicesor both supplied on or after the appointed day in pursuance of a contractentered into prior to the appointed day shall be liable to tax under theprovisions of this Act.

(11) (a) notwithstanding anything contained in section 12, no tax shallbe payable on goods under this Act to the extent the tax was leviable on thesaid goods under the Maharashtra Value Added Tax Act, 2002 ;

(b) notwithstanding anything contained in section 13, no tax shall bepayable on services under this Act to the extent the tax was leviable on thesaid services under Chapter V of the Finance Act, 1994 ;

(c) where tax was paid on any supply, both under the Maharashtra ValueAdded Tax Act, 2002 and under Chapter V of the Finance Act, 1994, tax shallbe leviable under this Act and the taxable person shall be entitled to takecredit of value added tax or service tax paid under the existing law to theextent of supplies made after the appointed day and such credit shall becalculated in such manner as may be prescribed.

Mah.IX of2005.

32 of1994.Mah.IX of2005.32 of1994.


(12) Where any goods sent on approval basis, not earlier than six monthsbefore the appointed day, are rejected or not approved by the buyer andreturned to the seller on or after the appointed day, no tax shall be payablethereon if such goods are returned within six months from the appointedday :

Provided that the said period of six months may, on sufficient causebeing shown, be extended by the Commissioner for a further period notexceeding two months :

Provided further that the tax shall be payable by the person returningthe goods if such goods are liable to tax under this Act, and are returnedafter the period specified in this sub-section :

Provided also that tax shall be payable by the person who has sent thegoods on approval basis if such goods are liable to tax under this Act, and arenot returned within the period specified in this sub-section.

(13) Where a supplier has made any sale of goods in respect of whichtax was required to be deducted at source under the Maharashtra ValueAdded Tax, 2002 and has also issued an invoice for the same before theappointed day, no deduction of tax at source under section 51 shall be madeby the deductor under the said section where payment to the said supplier ismade on or after the appointed day.

(14) Where any goods or capital goods belonging to the principal arelying at the premises of the agent on the appointed day, the agent shall beentitled to take credit of the tax paid on such goods or capital goods subjectto fulfilment of the following conditions :

(i) the agent is a registered taxable person under this Act ;(ii) both the principal and the agent declare the details of stock of

goods or capital goods lying with such agent on the day immediatelypreceding the appointed day in such form and manner and within suchtime as may be prescribed in this behalf ;

(iii) the invoices for such goods or capital goods had been issuednot earlier than twelve months immediately preceding the appointedday ; and

(iv) the principal has either reversed or not availed of the inputtax credit in respect of such,—

(a) goods ; or(b) capital goods or, having availed of such credit, has reversed

the said credit, to the extent availed of by him.Explanation.—For the purposes of this Chapter, the expression

“capital goods” shall have the same meaning as assigned to it in theMaharashtra Value Added Tax, 2002.

CHAPTER XXIMISCELLANEOUS

143. (1) A registered person (hereafter in this section referred to asthe “principal”) may, under intimation and subject to such conditions as maybe prescribed, send any inputs or capital goods, without payment of tax, to ajobworker for jobwork and from there subsequently send to another jobworkerand likewise, and shall,––

(a) bring back inputs, after completion of jobwork or otherwise, orcapital goods, other than moulds and dies, jigs and fixtures, or tools,within one year and three years, respectively, of their being sent out, toany of his place of business, without payment of tax ;

Mah.IX of2005.

Jobworkprocedure.

Mah.IX of2005.

45

50


(b) supply such inputs, after completion of jobwork or otherwise, orcapital goods, other than moulds and dies, jigs and fixtures, or tools,within one year and three years, respectively, of their being sent outfrom the place of business of a jobworker on payment of tax within India,or with or without payment of tax for export, as the case may be :

Provided that the principal shall not supply the goods from the placeof business of a jobworker in accordance with the provisions of this clauseunless the said principal declares the place of business of the jobworkeras his additional place of business except in a case-

(i) where the jobworker is registered under section 25 ; or(ii) where the principal is engaged in the supply of such goods as

may be notified by the Commissioner.(2) The responsibility for keeping proper accounts for the inputs or

capital goods shall lie with the principal.(3) Where the inputs sent for jobwork are not received back by the

principal after completion of jobwork or otherwise in accordance with theprovisions of clause (a) of sub-section (1) or are not supplied from the placeof business of the jobworker in accordance with the provisions of clause (b) ofsub-section (1) within a period of one year of their being sent out, it shall bedeemed that such inputs had been supplied by the principal to the jobworkeron the day when the said inputs were sent out.

(4) Where the capital goods, other than moulds and dies, jigs andfixtures, or tools, sent for jobwork are not received back by the principal inaccordance with the provisions of clause (a) of sub-section (1) or are notsupplied from the place of business of the jobworker in accordance with theprovisions of clause (b) of sub-section (1) within a period of three years oftheir being sent out, it shall be deemed that such capital goods had beensupplied by the principal to the jobworker on the day when the said capitalgoods were sent out.

(5) Notwithstanding anything contained in sub-sections (1) and (2), anywaste and scrap generated during thejob work may be supplied by thejobworker directly from his place of business on payment of tax, if suchjobworker is registered, or by the principal, if the jobworker is not registered.

Explanation.—For the purposes of jobwork, input includes intermediategoods arising from any treatment or process carried out on the inputs by theprincipal or the jobworker.

144. Where any document—

(i) is produced by any person under this Act or any other law forthe time being in force ; or

(ii) has been seized from the custody or control of any person underthis Act or any other law for the time being in force ; or

(iii) has been received from any place outside India in the course ofany proceedings under this Act or any other law for the time being inforce,

and such document is tendered by the prosecution in evidence against himor any other person who is tried jointly with him, the court shall--

(a) unless the contrary is proved by such person, presume —(i) the truth of the contents of such document ;

Presumptionas to

documentsin certain

cases.


(ii) that the signature and every other part of such documentwhich purports to be in the handwriting of any particular person orwhich the court may reasonably assume to have been signed by, orto be in the handwriting of, any particular person, is in that person’shandwriting, and in the case of a document executed or attested,that it was executed or attested by the person by whom it purportsto have been so executed or attested ;(b) admit the document in evidence notwithstanding that it is not

duly stamped, if such document is otherwise admissible in evidence.

145. (1) Notwithstanding anything contained in any other law for thetime being in force, —

(a) a micro film of a document or the reproduction of the image orimages embodied in such micro film (whether enlarged or not) ; or

(b) a facsimile copy of a document ; or(c) a statement contained in a document and included in a printed

material produced by a computer, subject to such conditions as may beprescribed ; or

(d) any information stored electronically in any device or media,including any hard copies made of such information,

shall be deemed to be a document for the purposes of this Act and the rulesmade thereunder and shall be admissible in any proceedings thereunder,without further proof or production of the original, as evidence of any contentsof the original or of any fact stated therein of which direct evidence would beadmissible.

(2) In any proceedings under this Act or the rules made thereunder, whereit is desired to give a statement in evidence by virtue of this section, acertificate,—

(a) identifying the document containing the statement anddescribing the manner in which it was produced ;

(b) giving such particulars of any device involved in the productionof that document as may be appropriate for the purpose of showing thatthe document was produced by a computer,

shall be evidence of any matter stated in the certificate and for the purposesof this sub-section it shall be sufficient for a matter to be stated to the best ofthe knowledge and belief of the person stating it.

146. The Government may, on the recommendations of the Council,notify the Common Goods and Services Tax Electronic Portal for facilitatingregistration, payment of tax, furnishing of returns, computation andsettlement of integrated tax, electronic way bill and for carrying out suchother functions and for such purposes as may be prescribed.

Admissibilityof microfilms,facsimilecopies ofdocumentsandcomputerprintoutsasdocumentsand asevidence.

Com monPortal.

¦ÉÉMÉ +É`ö--94-13


147. The Government may, on the recommendations of the Council,notify certain supplies of goods as “deemed exports”, where goods supplieddo not leave India, and payment for such supplies is received either in Indianrupees or in convertible foreign exchange, if such goods are manufactured inIndia.

148. The Government may, on the recommendations of the Council,and subject to such conditions and safeguards as may be prescribed, notifycertain classes of registered persons, and the special procedures to be followedby such persons including those with regard to registration, furnishing ofreturn, payment of tax and administration of such persons.

149. (1) Every registered person may be assigned a goods and servicestax compliance rating score by the Government based on his record ofcompliance with the provisions of this Act.

(2) The goods and services tax compliance rating score may bedetermined on the basis of such parameters as may be prescribed.

(3) The goods and services tax compliance rating score may be updatedat periodic intervals and intimated to the registered person and also placedin the public domain in such manner as may be prescribed.

150. (1) Any person, being—

(a) a taxable person ; or(b) a local authority or other public body or association ; or(c) any authority of the State Government responsible for the

collection of value added tax or sales tax or State excise duty or anauthority of the Central Government responsible for the collection ofexcise duty or customs duty ; or

(d) an income tax authority appointed under the provisions of theIncome-tax Act, 1961 ; or

(e) a banking company within the meaning of clause (a) of section45A of the Reserve Bank of India Act, 1934 ; or

(f) a State Electricity Board or an electricity distribution ortransmission licensee under the Electricity Act, 2003, or any other entityentrusted with such functions by the Central Government or the StateGovernment ; or

(g) the Registrar or Sub-Registrar appointed under section 6 of theRegistration Act, 1908 ; or

(h) a Registrar within the meaning of the Companies Act, 2013 ; or

(i) the registering authority empowered to register motor vehiclesunder the Motor Vehicles Act, 1988 ; or

(j) the Collector referred to in clause (c) of section 3 of the Right toFair Compensation and Transparency in Land Acquisition, Rehabilitationand Resettlement Act, 2013 ; or

(k) the recognised stock exchange referred to in clause (f) of section2 of the Securities Contracts (Regulation) Act, 1956 ; or

(l) a depository referred to in clause (e) of sub-section (1) of section2 of the Depositories Act, 1996 ; or

D ee m edExports.

Specialprocedurefor certainprocesses.

Goods andservices

taxcompliance

rating.

Obligationto furnish

informationreturn.

43 of1961.

2 of1934.

36 of2003.

16 of1908.

18 of2013.

59 of1988.

30 of2013.

42 of1956.22 of1996.


(m) an officer of the Reserve Bank of India as constituted undersection 3 of the Reserve Bank of India Act, 1934 ; or

(n) the Goods and Services Tax Network, a company registeredunder the Companies Act, 2013 ; or

(o) a person to whom a Unique Identity Number has been grantedunder sub-section (9) of section 25 ; or

(p) any other person as may be specified, on the recommendationsof the Council, by the Government,

who is responsible for maintaining record of registration or statement ofaccounts or any periodic return or document containing details of paymentof tax and other details of transaction of goods or services or both ortransactions related to a bank account or consumption of electricity ortransaction of purchase, sale or exchange of goods or property or right orinterest in a property under any law for the time being in force, shall furnishan information return of the same in respect of such periods, within suchtime, in such form and manner and to such authority or agency as may beprescribed.

(2) Where the Commissioner, or an officer authorised by him in thisbehalf, considers that the information furnished in the information return isdefective, he may intimate the defect to the person who has furnished suchinformation return and give him an opportunity of rectifying the defect withina period of thirty days from the date of such intimation or within such furtherperiod which, on an application made in this behalf, the said authority mayallow and if the defect is not rectified within the said period of thirty daysor, the further period so allowed, then, notwithstanding anything containedin any other provisions of this Act, such information return shall be treatedas not furnished and the provisions of this Act shall apply.

(3) Where a person who is required to furnish information return hasnot furnished the same within the time specified in sub-section (1) or sub-section (2), the said authority may serve upon him a notice requiringfurnishing of such information return within a period not exceeding ninetydays from the date of service of the notice and such person shall furnish theinformation return.

151. (1) The Commissioner may, if he considers that it is necessary soto do, by notification, direct that statistics may be collected relating to anymatter dealt with by or in connection with this Act.

(2) Upon such notification being issued, the Commissioner, or any personauthorised by him in this behalf, may call upon the concerned persons tofurnish such information or returns, in such form and manner as may beprescribed, relating to any matter in respect of which statistics is to becollected.

152. (1) No information of any individual return or part thereof withrespect to any matter given for the purposes of section 150 or section 151shall, without the previous consent in writing of the concerned person or hisauthorised representative, be published in such manner so as to enable suchparticulars to be identified as referring to a particular person and no suchinformation shall be used for the purpose of any proceedings under this Act.

(2) Except for the purposes of prosecution under this Act or any otherlaw for the time being in force, no person who is not engaged in the collectionof statistics under this Act or compilation or computerisation thereof for the

2 of1934.

18 of2013.

Power tocollectstatistics.

Bar ondisclosureo finformation.

¦ÉÉMÉ +É`ö--94-14


purposes of this Act, shall be permitted to see or have access to anyinformation or any individual return referred to in section 151.

(3) Nothing in this section shall apply to the publication of anyinformation relating to a class of taxable persons or class of transactions, ifin the opinion of the Commissioner, it is desirable in the public interest topublish such information.

153. Any officer not below the rank of Assistant Commissioner may,having regard to the nature and complexity of the case and the interest ofrevenue, take assistance of any expert at any stage of scrutiny, inquiry,investigation or any other proceedings before him.

154. The Commissioner or an officer authorised by him may takesamples of goods from the possession of any taxable person, where heconsiders it necessary, and provide a receipt for any samples so taken.

155. Where any person claims that he is eligible for input tax creditunder this Act, the burden of proving such claim shall lie on such person.

156. All persons discharging functions under this Act shall be deemedto be public servants within the meaning of section 21 of the Indian PenalCode.

157. (1) No suit, prosecution or other legal proceedings shall lie againstthe President, State President, Members, Officers or other employees of theAppellate Tribunal or any other person authorised by the said AppellateTribunal for anything which is in good faith done or intended to be doneunder this Act or the rules made thereunder.

(2) No suit, prosecution or other legal proceedings shall lie against anyofficer appointed or authorised under this Act for anything which is done orintended to be done in good faith under this Act or the rules made thereunder.

158. (1) All particulars contained in any statement made, returnfurnished or accounts or documents produced in accordance with this Act, orin any record of evidence given in the course of any proceedings under thisAct (other than proceedings before a criminal court), or in any record of anyproceedings under this Act shall, save as provided in sub-section (3), not bedisclosed.

(2) Notwithstanding anything contained in the Indian Evidence Act,1872, no court shall, save as otherwise provided in sub-section (3), requireany officer appointed or authorised under this Act to produce before it or togive evidence before it in respect of particulars referred to in sub-section (1).

(3) Nothing contained in this section shall apply to the disclosure of,––(a) any particulars in respect of any statement, return, accounts,

documents, evidence, affidavit or deposition, for the purpose of anyprosecution under the Indian Penal Code or the Prevention of CorruptionAct, 1988, or any other law for the time being in force ; or

(b) any particulars to the Central Government or the StateGovernment or to any person acting in the implementation of this Act,for the purposes of carrying out the objects of this Act ; or

(c) any particulars when such disclosure is occasioned by the lawfulexercise under this Act of any process for the service of any notice orrecovery of any demand ; or

Takingassistance

from anexpert.

Power totake

samples.

Burden ofproof.

Personsdeemed to

be publicservants.

Protectionof action

takenunder this

Act.

Disclosureo f

informationby a public

servant.

45 of1860.

1 of1872.

45 of1860.49 of1988.


(d) any particulars to a civil court in any suit or proceedings, towhich the Government or any authority under this Act is a party, whichrelates to any matter arising out of any proceedings under this Act orunder any other law for the time being in force authorising any suchauthority to exercise any powers thereunder ; or

(e) any particulars to any officer appointed for the purpose of auditof tax receipts or refunds of the tax imposed by this Act ; or

(f) any particulars where such particulars are relevant for thepurposes of any inquiry into the conduct of any officer appointed orauthorised under this Act, to any person or persons appointed as aninquiry officer under any law for the time being in force ; or

(g) any such particulars to an officer of the Central Government orof any State Government, as may be necessary for the purpose of enablingthat Government to levy or realise any tax or duty ; or

(h) any particulars when such disclosure is occasioned by the lawfulexercise by a public servant or any other statutory authority, of his orits powers under any law for the time being in force ; or

(i) any particulars relevant to any inquiry into a charge of misconductin connection with any proceedings under this Act against a practisingadvocate, a tax practitioner, a practising cost accountant, a practisingchartered accountant, a practising company secretary to the authorityempowered to take disciplinary action against the members practisingthe profession of a legal practitioner, a cost accountant, a charteredaccountant or a company secretary, as the case may be ; or

(j) any particulars to any agency appointed for the purposes of dataentry on any automated system or for the purpose of operating,upgrading or maintaining any automated system where such agency iscontractually bound not to use or disclose such particulars except forthe aforesaid purposes ; or

(k) any such particulars to an officer of the Government as may benecessary for the purposes of any other law for the time being in force ;and

(l) any information relating to any class of taxable persons or classof transactions for publication, if, in the opinion of the Commissioner, itis desirable in the public interest, to publish such information.

159. (1) If the Commissioner, or any other officer authorised by himin this behalf, is of the opinion that it is necessary or expedient in the publicinterest to publish the name of any person and any other particulars relatingto any proceedings or prosecution under this Act in respect of such person, itmay cause to be published such name and particulars in such manner as itthinks fit.

(2) No publication under this section shall be made in relation to anypenalty imposed under this Act until the time for presenting an appeal tothe Appellate Authority under section 107 has expired without an appealhaving been presented or the appeal, if presented, has been disposed of.

Explanation.––In the case of firm, company or other association ofpersons, the names of the partners of the firm, directors, managing agents,secretaries and treasurers or managers of the company, or the members ofthe association, as the case may be, may also be published if, in the opinion ofthe Commissioner, or any other officer authorised by him in this behalf,circumstances of the case justify it.

Publicationo finformationin respectof personsin certaincases.


160. (1) No assessment, re-assessment, adjudication, review, revision,appeal, rectification, notice, summons or other proceedings done, accepted,made, issued, initiated, or purported to have been done, accepted, made,issued, initiated in pursuance of any of the provisions of this Act shall beinvalid or deemed to be invalid merely by reason of any mistake, defect oromission therein, if such assessment, re-assessment, adjudication, review,revision, appeal, rectification, notice, summons or other proceedings are insubstance and effect in conformity with or according to the intents, purposesand requirements of this Act or any existing law.

(2) The service of any notice, order or communication shall not be calledin question, if the notice, order or communication, as the case may be, hasalready been acted upon by the person to whom it is issued or where suchservice has not been called in question at or in the earlier proceedingscommenced, continued or finalised pursuant to such notice, order orcommunication.

161. Without prejudice to the provisions of section 160, andnotwithstanding anything contained in any other provisions of this Act, anyauthority, who has passed or issued any decision or order or notice orcertificate or any other document, may rectify any error which is apparenton the face of record in such decision or order or notice or certificate or anyother document, either on its own motion or where such error is brought toits notice by any officer appointed under this Act or an officer appointedunder the Central Goods and Services Tax Act or by the affected personwithin a period of three months from the date of issue of such decision ororder or notice or certificate or any other document, as the case may be :

Provided that no such rectification shall be done after a period of sixmonths from the date of issue of such decision or order or notice or certificateor any other document :

Provided further that the said period of six months shall not apply insuch cases where the rectification is purely in the nature of correction of aclerical or arithmetical error, arising from any accidental slip or omission :

Provided also that where such rectification adversely affects any person,the principles of natural justice shall be followed by the authority carryingout such rectification.

162. Save as provided in sections117 and 118, no civil court shall havejurisdiction to deal with or decide any question arising from or relating toanything done or purported to be done under this Act.

163. Wherever a copy of any order or document is to be provided toany person on an application made by him for that purpose, there shall bepaid such fee as may be prescribed.

164. (1) The Government may, on the recommendations of the Council,by notification, make rules for carrying out the provisions of this Act.

(2) Without prejudice to the generality of the provisions of sub-section(1), the Government may make rules for all or any of the matters which bythis Act are required to be, or may be, prescribed or in respect of whichprovisions are to be or may be made by rules.

(3) The power to make rules conferred by this section shall include thepower to give retrospective effect to the rules or any of them from a date notearlier than the date on which the provisions of this Act come into force.

Assess-ment

proceedings,etc. not tobe invalidon certain

grounds.

Rectificationof errorsapparent

on the faceof record.

Bar onjurisdiction

of civilcourts.

Levy of fee.

Power ofGovernment

to makerules.


(4) Any rules made under sub-section (1) or sub-section (2) may providethat a contravention thereof shall be liable to a penalty not exceeding tenthousand rupees.

165. The Government may, by notification, make regulations consistentwith this Act and the rules made thereunder to carry out the purposes ofthis Act.

166. Every rule made by the Government, every regulation made bythe Government and every notification issued by the Government under thisAct, shall be laid, as soon as may be after it is made or issued, before theState Legislature, while it is in session, for a total period of thirty days whichmay be comprised in one session or in two or more successive sessions, andif, before the expiry of the session immediately following the session or thesuccessive sessions aforesaid, the State Legislature agrees in making anymodification in the rule or regulation or in the notification, as the case maybe, or the State Legislature agrees that the rule or regulation or thenotification should not be made, the rule or regulation or notification, as thecase may be, shall thereafter have effect only in such modified form or be ofno effect, as the case may be ; so, however, that any such modification orannulment shall be without prejudice to the validity of anything previouslydone under that rule or regulation or notification, as the case may be.

167. The Commissioner may, by notification, direct that subject to suchconditions, if any, as may be specified in the notification, any powerexercisable by any authority or officer under this Act may be exercisable alsoby another authority or officer as may be specified in such notification.

168. The Commissioner may, if he considers it necessary or expedientso to do for the purpose of uniformity in the implementation of this Act,issue such orders, instructions or directions to the State tax officers as itmay deem fit, and thereupon all such officers and all other persons employedin the implementation of this Act shall observe and follow such orders,instructions or directions.

169. (1) Any decision, order, summons, notice or other communicationunder this Act or the rules made thereunder shall be served by any one ofthe following methods, namely :—-

(a) by giving or tendering it directly or by a messenger including acourier to the addressee or the taxable person or to his manager orauthorised representative or an advocate or a tax practitioner holdingauthority to appear in the proceedings on behalf of the taxable personor to a person regularly employed by him in connection with the business,or to any adult member of family residing with the taxable person ; or

(b) by registered post or speed post or courier with acknowledgementdue, to the person for whom it is intended or his authorisedrepresentative, if any, at his last known place of business or residence ;or

(c) by sending a communication to his e-mail address provided atthe time of registration or as amended from time to time ; or

(d) by making it available on the common portal ; or(e) by publication in a newspaper circulating in the locality in which

the taxable person or the person to whom it is issued is last known tohave resided, carried on business or personally worked for gain ; or

Power tomakeregula-tions.

Laying ofrules,regulationsandnotifica-tions.

Delegationof powers.

Power toissueinstru-ctions ordirections.

Service ofnotice incertaincircum-stances.

¦ÉÉMÉ +É`ö--94-15


(f) if none of the modes aforesaid is practicable, by affixing it insome conspicuous place at his last known place of business or residenceand if such mode is not practicable for any reason, then by affixing acopy thereof on the notice board of the office of the concerned officer orauthority who or which passed such decision or order or issued suchsummons or notice.(2) Every decision, order, summons, notice or any communication shall

be deemed to have been served on the date on which it is tendered orpublished or a copy thereof is affixed in the manner provided in sub-section(1).

(3) When such decision, order, summons, notice or any communicationis sent by registered post or speed post, it shall be deemed to have beenreceived by the addressee at the expiry of the period normally taken by suchpost in transit unless the contrary is proved.

170. The amount of tax, interest, penalty, fine or any other sum payable,and the amount of refund or any other sum due, under the provisions of thisAct shall be rounded off to the nearest rupee and, for this purpose, wheresuch amount contains a part of a rupee consisting of paise, then, if such partis fifty paise or more, it shall be increased to one rupee and if such part isless than fifty paise it shall be ignored.

171. (1) Any reduction in rate of tax on any supply of goods or servicesor the benefit of input tax credit shall be passed on to the recipient by way ofcommensurate reduction in prices.

(2) The Central Government may, on recommendations of the Council,by notification, constitute an Authority, or empower an existing Authorityconstituted under any law for the time being in force, to examine whetherinput tax credits availed by any registered person or the reduction in the taxrate have actually resulted in a commensurate reduction in the price of thegoods or services or both supplied by him.

(3) The Authority referred to in sub-section (2) shall exercise such powersand discharge such functions as may be prescribed.

172. (1) If any difficulty arises in giving effect to any provisions of thisAct, the Government may, on the recommendations of the Council, by a generalor a special order published in the Official Gazette, make such provisionsnot inconsistent with the provisions of this Act or the rules or regulationsmade thereunder, as may be necessary or expedient for the purpose ofremoving the said difficulty :

Provided that no such order shall be made after the expiry of a period ofthree years from the date of commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be,after it is made, before the State Legislature.

173. (1) Save as otherwise provided in this Act, on and from the date ofcommencement of this Act, the following laws are hereby repealed(hereinafter referred to as “the repealed Acts”), namely :—

(a) The Maharashtra Betting Tax Act, 1925.

(b) The Maharashtra Purchase Tax on Sugarcane Act, 1962.

Roundingoff of tax,

etc.

Anti-profiteering

measure.

Removal ofdifficulties.

Repeals.

VI of1925.

Mah.IX of1962.


(c) The Maharashtra Advertisements Tax Act, 1967.

(d) The Maharashtra Forest Development (Tax on sale of ForestProduce by Government or Forest Development Corporation) Act, 1983.

(e) The Maharashtra Tax on Luxuries Act, 1987.

(f) The Maharashtra Tax on Entry of Motor Vehicles into LocalAreas Act, 1987.

(g) The Maharashtra Tax on the Entry of Goods into Local AreasAct, 2002.

(h) The Maharashtra Tax on Lotteries Act, 2006.

(2) Every registration certificate, licence or permission, as the case maybe, granted under any of the repealed Acts or such repealed provision, shallstand cancelled with effect from the appointed day.

174. (1) The repeal of the said Acts specified in section 173 shall not,—(a) revive anything not in force or existing at the time at which such

repeal takes effect ; or(b) affect the previous operation of any enactment or part thereof,

so repealed and orders or anything duly done or suffered thereunder ;or

(c) affect any right, privilege, obligation, or liability acquired, accruedor incurred under the repealed Acts, orders under repealed Acts ; or

(d) affect any tax, surcharge, penalty, interest, fee or fine as are dueor may become due or any forfeiture or punishment incurred or inflictedin respect of any offence or violation committed against the provisionsof repealed Acts ; or

(e) affect any investigation, inquiry, audit, assessment, reassessment,refund, determination, advance ruling, rectification and any other legalproceedings or recovery of arrears or remedy in respect of any such tax,surcharge, penalty, interest, fee, fine, right, privilege, obligation, liability,forfeiture or punishment, as aforesaid, and any such investigation,inquiry, audit, assessment, reassessment, refund, determination, advanceruling, rectification and any other legal proceedings or recovery of arrearsor remedy in respect of any such tax, surcharge, penalty, interest, fee,fine, interest, right, privilege, obligation, liability, forfeiture orpunishment, as aforesaid, may be instituted, continued or enforced, andany such tax, surcharge, penalty, interest, fee, fine, forfeiture orpunishment may be levied or imposed as if these Acts had not been sorepealed ; or

(f) affect any proceedings including that relating to an appeal,revision, review or reference, instituted before, on or after the appointedday under the said repealed Acts or repealed provisions, and suchproceedings shall be continued under the said repealed Acts or repealedprovisions, as if this Act had not come into force ;

Savings.

Mah.XVIII

o f1967.Mah.XX II

o f1983.

Mah.XLI of

1987.

Mah.XLII

o f1987.

Mah.IV of2003.

Mah.XLIII

o f2006.

¦ÉÉMÉ +É`ö--94-15+


(g) those laws (including any earlier law continued in force underany provisions thereof), and all rules, regulations, orders, notifications,forms, certificates and notices, appointments and delegation of powersissued under those laws and in force immediately before the appointedday shall, subject to the other provisions of this Act, in so far as theyapply, continue to have effect after the appointed day for the purposesof the levy, returns, assessment, reassessment, appeal, determination,revision, rectification, reference, limitation, production and inspectionof accounts and documents and search of premises, transfer ofproceedings, payment and recovery, calculation of cumulative quantumof benefits, exemption from payment of tax and deferment of due datefor payment of tax, cancellation of the certificate of entitlement,collection, or deduction of tax at source, refund or set off of any taxwithholding of any refund, exemption from payment of tax, collection ofstatistics, the power to make rules, the imposition of any penalty, or ofinterest or forfeiture of an sum where such levy, returns, assessment,re-assessment, appeal, determination, revision, rectification, reference,limitation, payment and recovery, calculation of cumulative quantum ofbenefits, exemption from payment of tax and deferment of due date forpayment of tax, cancellation of the certificate of entitlement, collection,deduction of tax at source, refund, set-off, withholding of any refundexemption, collection of statistics, the power to make rules, limitation,production and inspection of accounts and documents and search ofpremises, transfer of proceedings, penalty, interest or forfeiture of anysum relates to any period ending before the appointed day, or for anyother purpose whatsoever connected with or incidental to any of thepurposes aforesaid and whether or not the tax, penalty, interest, sumforfeited or tax deducted at source, if any, in relation to such proceedingsis paid before or after the appointed day.(2) Without prejudice to the provisions contained in the foregoing sub-

section, the provisions of sections 7 and 25 of the Maharashtra GeneralClauses Act, shall apply in relation to the repeal of any of the laws referredto in this section as if the law so repealed had been an enactment within themeaning of section 7 of the said Act.

SCHEDULE I[see section 7]

ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADEWITHOUT CONSIDERATION

1. Permanent transfer or disposal of business assets where input taxcredit has been availed on such assets.

2. Supply of goods or services or both between related persons orbetween distinct persons as specified in section 25, when made in the courseor furtherance of business :

Provided that gifts not exceeding fifty thousand rupees in value in afinancial year by an employer to an employee shall not be treated as supplyof goods or services or both.

I of1904.


3. Supply of goods—(a) by a principal to his agent where the agent undertakes to supply

such goods on behalf of the principal; or(b) by an agent to his principal where the agent undertakes to receive

such goods on behalf of the principal.

4. Import of services by a taxable person from a related person or fromany of his other establishments outside India, in the course or furtherance ofbusiness.

SCHEDULE II

[see section 7]

ACTIVITIES TO BE TREATED AS SUPPLY OF GOODSOR SUPPLY OF SERVICES

1. Transfer.—(a) any transfer of the title in goods is a supply of goods;

(b) any transfer of right in goods or of undivided share in goods withoutthe transfer of title thereof, is a supply of services ;

(c) any transfer of title in goods under an agreement which stipulatesthat property in goods shall pass at a future date upon payment of fullconsideration as agreed, is a supply of goods.

2. Land and Building.—(a) any lease, tenancy, easement, licence tooccupy land is a supply of services;

(b) any lease or letting out of the building including a commercial,industrial or residential complex for business or commerce, either wholly orpartly, is a supply of services.

3. Treatment or process.—Any treatment or process which is appliedto another person’s goods is a supply of services.

4. Transfer of business assets.—(a) where goods forming part of theassets of a business are transferred or disposed of by or under the directionsof the person carrying on the business so as no longer to form part of thoseassets, whether or not for a consideration, such transfer or disposal is a supplyof goods by the person ;

(b) where, by or under the direction of a person carrying on a business,goods held or used for the purposes of the business are put to any private useor are used, or made available to any person for use, for any purpose otherthan a purpose of the business, whether or not for a consideration, the usageor making available of such goods is a supply of services ;

(c) where any person ceases to be a taxable person, any goods formingpart of the assets of any business carried on by him shall be deemed to besupplied by him in the course or furtherance of his business immediatelybefore he ceases to be a taxable person, unless—

(i) the business is transferred as a going concern to another person ;or

(ii) the business is carried on by a personal representative who isdeemed to be a taxable person.


20 of1972.

5. Supply of services.—The following shall be treated as supply ofservice, namely :—

(a) renting of immovable property ;

(b) construction of a complex, building, civil structure or a partthereof, including a complex or building intended for sale to a buyer,wholly or partly, except where the entire consideration has been receivedafter issuance of completion certificate, where required, by thecompetent authority or after its first occupation, whichever is earlier.

Explanation.––For the purposes of this clause––

(1) the expression “competent authority” means the Governmentor any authority authorised to issue completion certificate underany law for the time being in force and in case of non-requirementof such certificate from such authority, from any of the following,namely :—

(i) an architect registered with the Council of Architectureconstituted under the Architects Act, 1972 ; or

(ii) a chartered engineer registered with the Institution ofEngineers (India) ; or

(iii) a licensed surveyor of the respective local body of thecity or town or village or development or planning authority;(2) the expression “construction” includes additions, alterations,

replacements or remodelling of any existing civil structure ;(c) temporary transfer or permitting the use or enjoyment of any

intellectual property right ;(d) development, design, programming, customisation, adaptation,

upgradation, enhancement, implementation of information technologysoftware ;

(e) agreeing to the obligation to refrain from an act, or to toleratean act or a situation, or to do an act ; and

(f) transfer of the right to use any goods for any purpose (whetheror not for a specified period) for cash, deferred payment or other valuableconsideration.

6. Composite Supply.— The following composite supplies shall betreated as a supply of services, namely :—

(a) works contract as defined in clause (119) of section 2 ; and(b) supply, by way of or as part of any service or in any other manner

whatsoever, of goods, being food or any other article for humanconsumption or any drink (other than alcoholic liquor for humanconsumption), where such supply or service is for cash, deferred paymentor other valuable consideration.

7. Supply of Goods.— The following shall be treated as supply of goods,namely :—

Supply of goods by any unincorporated association or body ofpersons to a member thereof for cash, deferred payment or othervaluable consideration.


SCHEDULE III[see section7]

ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATEDNEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES

1. Services by an employee to the employer in the course of or in relationto his employment.

2. Services by any court or Tribunal established under any law for thetime being in force.

3. (a) The functions performed by the Members of Parliament, Membersof State Legislature, Members of Panchayats, Members of Municipalities andMembers of other local authorities ;

(b) the duties performed by any person who holds any post in pursuanceof the provisions of the Constitution in that capacity ; or

(c) the duties performed by any person as a Chairperson or a Member ora Director in a body established by the Central Government or a StateGovernment or local authority and who is not deemed as an employee beforethe commencement of this clause.

4. Services of funeral, burial, crematorium or mortuary includingtransportation of the deceased.

5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II,sale of building.

6. Actionable claims, other than lottery, betting and gambling.

Explanation.—For the purposes of paragraph 2, the term “court” includesDistrict Court, High Court and Supreme Court.

ON BEHALF OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATION, PRINTED AND PUBLISHED BY SHRI PARSHURAM JAGANNATH GOSAVI, PRINTED

AT GOVERNMENT CENTRAL PRESS, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004 AND PUBLISHED AT DIRECTORATE OF GOVERNMENT PRINTING,

STATIONERY AND PUBLICATION, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004, EDITOR : SHRI PARSHURAM JAGANNATH GOSAVI.

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